Financial Awareness-500 Questions PDF

Top 500 Financial Awareness Questions for LIC AAO/SBI PO/SBI Clerk
1) An emerging market economy is highly classified with e) NPA

relatively- one in which the country is becoming a Answer: d)
developed nation and is determined through many Gross national product (GNP) is a broad measure of a
socio_________ nation's total economic activity. GNP is the value of all
a) Economic factors finished goods and services produced in a country in one year
b) External factors by its nationals.
c) Commercial factors 4) Odisha CM Naveen Patnaik announced a Rs10,000
d) GDP factors crore scheme named KALIA for the overall development
e) Growth factors of farmers. KALIA stands for ______________.
Answer: a) a) Krushak Accommodation for Livelihood and Income
An emerging market economy is highly classified with Agriculture
relatively - one in which the country is becoming a developed b) Krushak Assistance for Livelihood and Income
nation and is determined through many socio- economic Augmentation
factors. c) Krushak Accommodation for Livelihood and Independent
2) RBI’s New Rules To Push Another Rs ____ Loans Into Agriculture
Insolvency stated Credit Suisse. d) Krushak Assistance for Livelihood and Independent
a) Rs 1.5 lakh crore Augmentation
b) Rs 2.5 lakh crore e) None of the given options is true
c) Rs 3.5 lakh crore Answer: b)
d) Rs 4.5 lakh crore Odisha CM Naveen Patnaik announced a Rs10,000 crore
e) Rs 5.5 lakh crore scheme for the overall development of farmers. Named
Answer: a) Krushak Assistance for Livelihood and Income
Another Rs 1.5 trillion (or Rs 1.5 lakh crore) of non- Augmentation (KALIA), the scheme will provide farmers
performing assets are now likely to be with the National with Rs10,000 a year at the rate of Rs5,000 each for Kharif
Company Law Tribunal in the next six months,” according to and Rabi season. Ganeshi Lal is the Governor of Odisha.
a Credit Suisse report on RBI’s new rules. 5) According to data released by Insurance Regulatory
3) _____ is the value of all finished goods and services and Development Authority of India (IRDAI), what
produced in a country in one year by its nationals. percentage of life insurance policies bought by women in
a) BOP 2017-18?
b) GDP a) 48%
c) CDS b) 42%
d) GNP c) 26%
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d) 32% include coins and notes in circulation and other money
e) 56% equivalents that are easily convertible into cash. M2 includes
Answer: d) M1 plus short-term time deposits in banks and 24-hour
While women constitute nearly 48% of the country’s money market funds. M3 includes M2 plus longer-term time
population, their contribution to the number of life policies deposits and money market funds with more than 24-hour
bought in 2017-18 stood at 32% of the 2.82 crores policies maturity. The exact definitions of the three measures depend
sold. According to the IRDAI annual report, of the 90 lakhs on the country. M4 includes M3 plus other deposits. The
policies bought by women in 2017-18, Maharashtra (12%), term broad money is used to describe M2, M3 or M4,
West Bengal (10.3%) and Uttar Pradesh (9.4%) accounted for depending on the local practice.
a third of these. 8) In context of banking, what does ‘BBB’ stands for?
6) In India, an Asset Reconstruction Company is a) Bank Board Bureau
regulated by? b) Bank Beneficiary Bureau
a) MUDRA c) Bank Bureau Board
b) SEBI d) Bank Bureau Beneficiary
c) NABARD e) None of the above
d) EXIM Answer: a)
e) RBI Banks Board Bureau is an autonomous body of Union
Answer: e) government of India tasked to improve the governance of
The leading problem in the country right now is alarming Public sector banks, recommend selection of chiefs of
volume of Non-Performing Assets with the banking system. government owned banks and financial institutions and to
Several attempts were made to tackle NPAs. A serious such help banks in developing strategies and capital raising plans.
step was the creation of dedicated institutions called Asset 9) Which among the following commodity exchange has
Reconstruction Companies or ARCs that purchases bad launched India’s first commodity options in gold?
assets or NPAs from banks at a negotiable price and helps a) National Spot Exchange Limited (NSEL)
banks to clean up their balance sheets (by removing the b) Indian Commodity Exchange Limited (ICEX)
NPAs). RBI has got the power to regulate the ARCs. c) National Commodity & Derivatives Exchange Limited
7) Narrow Money is the term in monetary aggregates, (NCDEX)
which is represented by? d) Multi-Commodity Exchange of India Ltd (MCX)
a) M1 e) Securities and Exchange Board of India (SEBI)
b) M2 Answer: d)
c) M3 The Multi-Commodity Exchange of India Ltd (MCX)
d) M4 launched India’s first commodity options in gold, giving
e) M5 stakeholders a new set of financial instruments to hedge their
Answer: a) price risks. Launched by Union Finance Minister Arun
Different measures of money supply. Not all of them are Jaitley in New Delhi on the auspicious day of Dhanteras, the
widely used and the exact classifications depend on the gold options received an encouraging response on Day 1.
country. M0 and M1, also called narrow money, normally

10) In Notice Money Market, the tenor of the transactions 13) The type of inflation which does not consider the
is from ________ inflation in food and fuel is known as?
a) 2-7 days a) Headline Inflation
b) 2-14 days b) Core Inflation
c) 2-21 days c) Consumer Inflation
d) 2-28 days d) Real Inflation
e) 2-90 days e) Nominal Inflation
Answer: b) Answer: b)
In money market, the amount that is lent for one day is Core inflation is also a term used to denote the extent of
known as “call money” and, if it exceeds one day or two days inflation in an economy. But Core inflation does not consider
to 14 days is referred to as “notice money.” the inflation in food and fuel. This is a concept derived from
11) Depositor Education and Awareness Fund (DEAF) is headline inflation. There is no index for direct measurement
maintained by which of the following organisation? of core inflation and now it is measured by excluding food
a) NABARD and fuel items from Wholesale Price Index (WPI) or
b) RBI Consumer Price Index (CPI).
c) Public Provident Fund Authorities 14) Which one among the following is not a part of
d) SIDBI priority sector lending?
e) IRDA a) Agriculture
Answer: b) b) Education
Depositor Education and Awareness Fund (DEAF) Scheme c) Renewable Energy
was established in 2014 and was inserted in the Banking d) Housing Loans
Regulation Act, 1949 empowering the central bank. All e) Export Import Credit
banks are required to transfer money lying in accounts that Answer: e)
have been inoperative for at least 10 years to the DEAF Priority Sector Lending is an important role given by the
according to specific guidelines. Reserve Bank of India (RBI) to the banks for providing a
12) Commercial Paper (CP) are issued by____________. specified portion of the bank lending to few specific sectors
a) Government of India like agriculture and allied activities, micro and small
b) Corporate enterprises, poor people for housing, students for education
c) Primary dealers (PDs) and other low income groups and weaker sections.. This is
d) Only a) and b) is correct essentially meant for an all-round development of the
e) Only b) and c) is correct economy as opposed to focusing only on the financial sector.
Answer: e) Priority Sector includes the following categories:
Commercial Paper (CP) is an unsecured money market (i) Agriculture
instrument introduced in 1990 which are issued in the form of (ii) Micro, Small and Medium Enterprises
a promissory note. Corporate, Primary Dealers and All India (iii) Export Credit
Financial Institutions are eligible to issue CP. (iv) Education
(v) Housing

(vi) Social Infrastructure 17) The World Bank has approved Rs.6000 crore to
(vii) Renewable Energy Central Sector Scheme of the Ministry of Water
(viii) Others Resources, River Development and Ganga Rejuvenation
15) Which of the following does not constitute an asset on for which scheme?
the Balance sheet of a company? a) PradhanMantriFasalBimaYojana
a) Tools and Equipment b) AtalBhujalYojana
b) Amounts receivable c) Atal Mission for Rejuvenation and Urban Transformation
c) Capital Stock d) PradhanMantriGaribKalyanYojana
d) Cash e) Atal Pension Yojana
e) All of these Answer: b)
Answer: c) The World Bank has approved AtalBhujalYojana (ABHY), a
A balance sheet, also known as a “statement of financial Rs.6000 crore Central Sector Scheme of the Ministry of
position”, reveals a company’s assets, liabilities and owners Water Resources, River Development and Ganga
equity (net worth). Assets are what a company uses to Rejuvenation. The scheme is to be implemented over a period
operate its business. While its liabilities and equity are two of five years from 2018-19 to 2022-23, with World Bank
sources that support these assets. Cash, accounts receivable, assistance. The scheme proposal has already been
tools and equipment, etc are categorized as assets, while recommended by the Expenditure Finance Committee and
liabilities, capital stock and retained earnings come under the Ministry will be seeking Cabinet approval for the project
Liabilities and Owners Equity. shortly.
16) Which Bank has announced an ESOP scheme with a 18) According to SEBI, investors will be permitted to
view to retaining its talent and incentivising staff by purchase mutual funds worth up to Rs. ______________
issuing up to 10 crore equity shares? through digital wallets.
a) Yes Bank a) Rs 25,000
b) HDFC Bank b) Rs 5,000
c) State Bank of India c) Rs 50,000
d) ICICI Bank d) Rs 1,00,000
e) Punjab National Bank e) Rs 1,50,000
Answer: e) Answer: c)
State-run Punjab National Bank (PNB) has announced an Investors will be permitted to purchase mutual funds worth
ESOP scheme with a view to retaining its talent and up to Rs. 50,000 through digital wallets, the market regulator,
incentivising staff by issuing up to 10 crore equity shares. SEBI stated in a release. "Investments up to Rs. 50,000 per
The bank stated it will issue up to 10 crore equity shares to its mutual fund per financial year can be made using e-wallets,"
employees under 'Employee Stock Purchase Scheme (ESPS)'. the regulator said while redemptions of such investments can
A note is being placed to board in its ensuing meeting dated be made only to the bank account of a unit holder.
June 15, 2018 regarding ESPS with a proposal for issuance of 19) Indian economy grew by what percent in the first
up to 10 crore equity shares to its employees, the bank said in quarter (April-June) of the current fiscal, the highest in
a regulatory filing. over two years as per the Finance Ministry?

a) 8.0% The scheme covers two income segments in the MIG viz. Rs
b) 8.1% 6,00,001 to Rs 12,00,000 per annum for MIG-I and Rs
c) 8.2% 12,00,001 to Rs 18,00,000 per annum for MIG-II.
d) 8.3% 22) Which state government launched ‘The Krushak
e) 8.4% Assistance for Livelihood and Income Augmentation
Answer: c) (KALIA)’ scheme worth Rs.10,180-crore, for overall
India's economy grew at an impressive 8.2 per cent in the development of small, marginal and landless farmers?
first quarter of 2018-19 financial year ending June 30 on the a) Telangana
back of a strong core performance and a healthy base . b) Kerala
20) The government of India has doubled the monetary c) Odisha
limit to _____________ for filing loan recovery d) Bihar
application in the Debt Recovery Tribunals (DRT) by e) None of these
banks and financial institutions. Answer: c)
a) 20 lakh rupees Chief Minister of Odisha, Naveen Patnaik, launched a Rs
b) 10 lakh rupees 10,180-crore scheme, for overall development of small,
c) 80 lakh rupees marginal and landless farmers, dubbed as ‘The Krushak
d) 30 lakh rupees Assistance for Livelihood and Income Augmentation
e) 14 lakh rupees (KALIA)’ scheme in Odisha. This scheme consists of a life
Answer: a) insurance of Rs.2 lakh for 57 lakh farmers and would grant
The government of India has doubled the monetary limit to them crop loans at zero per cent interest. Also, financial
20 lakh rupees for filing loan recovery application in the Debt assistance of Rs 10,000 per farmer family per annum to
Recovery Tribunals (DRT) by banks and financial around 30 lakh small and marginal farmers’ families.
institutions. 23) Union Government has allocated _____ rupees for the
21) Ministry of Housing & Urban Affairs has extended development of 40 satellite launch vehicles in the next 4
the Credit-Linked Subsidy Scheme (CLSS) for Middle years, as announced by Dr K Sivan, Chairman of Indian
Income Group (MIG) Scheme by another 12 months till Space Research Organisation (ISRO)
_____ a) Rs 12,540 crore
a) March 31, 2020 b) Rs 10,900 crore
b) April 30, 2020 c) Rs 13,678 crore
c) June 30, 2020 d) Rs 15,243 crore
d) January 1, 2020 e) None of these
e) None of these Answer: B)
Answer: a) Dr K Sivan, Chairman, Indian Space Research Organisation
The Ministry of Housing & Urban Affairs headed by (ISRO) announced at a ceremony organized by St Joseph’s
Minister of State Hardeep S. Puri, extended the Credit- College, Trichy , Tamil Nadu which is celebrating its 175
Linked Subsidy Scheme (CLSS) for Middle Income Group anniversary that the Union Government has allocated 10,900
(MIG) Scheme by another 12 months till March 31, 2020. crore rupees for the development of 40 satellite launch

vehicles in the next four years. He also informed that the 26) Indian Financial System Code consists of how many
Chandrayan-2 Mission will be launched within three months alphanumeric digit?
and It will land in one of those part of the Moon which is still a) 12
unexplored. b) 11
24) Reserve Bank of India has agreed to disburse Sri c) 10
Lanka’s loan amount of _____ to boost the nation’s d) 9
reserve e) 8
a) USD 100 million Answer: b)
b) USD 400 million IFSC is an 11-character codewith the first four alphabetic
c) USD 300 million characters representing the bank name, and the last six
d) USD 200 million characters (usually numeric, but can be alphabetic)
e) None of these representing the branch. The fifth character is 0 (zero) and
Answer: b) reserved for future use. Bank IFS Code is used by the NEFT
The Reserve bank of India has agreed to disbursed Sri & RTGS systems to route the messages to the destination
Lanka’s loan amount of USD 400 million to boost the banks/branches.
nation’s reserve.RBI has agreed to issue the fund under the The Indian Financial System Code (IFS Code) is an
SARRC SWAP facility system. It is also said that another alphanumeric code that uniquely identifies a bank-branch
request of currency swap USD 1 billion is under process . participating in the two main Electronic Funds Settlement
RBI’ S assistance is appreciated by the Sri Lanka government Systems in India.
and it will help the nation to recover and build itself from the 27) 'Financial Inclusion' is the powerful tool adopted by
political and constitutional crisis that is prevailing in the the Reserve Bank of India to fulfil the basic objective of
nation. a) Upliftment of population lying Below Poverty Line
25) GST Council approved doubling of exemption b) Connecting every Indian to the Country's Banking System
threshold under Goods and Services Tax (GST) regime to c) Ensuring bank finance to all the landless agriculturists
Rs 40 lakh along with raising the turnover limit under d) Overall financial growth backed by inflation control
composition scheme to ______ with effect from April 1, e) Inclusion of latest technology in Financial Sector of the
2019 country
a) Rs 1.5 crore Answer: b)
b) Rs 2 crore Financial inclusion may be defined as the process of ensuring
c) Rs 2.5 crore access to financial services and timely and adequate credit
d) Rs 3 crore where needed by vulnerable groups such as weaker sections
e) None of these and low income groups at an affordable cost. The one of the
Answer: a) basic objectives of financial inclusion is to connect every
Finance Minister Arun Jaitley raised the annual turnover for Indian to the Country's Banking System.
availing composition scheme to Rs 1.5 crore from Rs 1 crore 28) In how many languages, the amount of a bank note is
effective from April 1, 2019 to provide relief to small written on it?
businesses under Goods and Services (GST) regime. a) 15

b) 17 3) Special Drawing Rights (SDRs)
c) 22 4) Reserve Tranche Position in the IMF
d) 24 31) Which of the following component of external sector
e) None of these comes under Current Account in India?
Answer: b) a) FDI
The Indian Currency has a "Language Panel" with the b) Interest payments received by government
denomination of the note in 15 different regional languages. c) External Commercial Borrowings
Besides these 15 languages, the other 2 languages are d) FII
"HINDI", the national language, and "ENGLISH". So that e) NRI bank account
makes it to 17 languages. The languages are Hindi, English, Answer: b)
Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, The Balance of payments for a country is calculated by the
Malayalam, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Tamil, difference of Capital Account and Current account. Both the
Telugu and Urdu. accounts have different components included in it.
29) When the prices of commodities, goods and services Current Account: Components – Net Import-Export (Import
start declining consistently the phenomena is known as minus Export); Incomes (Profits, Interests, Dividend);
________ Transfers (Donations, Gifts. etc.)
a) Deflation Capital Account: Components – Investment (FDI, FII); Loan
b) Market capitalization (Government Borrowings, External commercial borrowings);
c) Negative growth Bank account transfers by NRIs, etc.
d) Discount yield 32) What would a clerk do if he finds that the amount
e) None of these written on a cheque, in words, and in digits is different?
Answer: a) a) Consider it as a stale cheque
When the prices of commodities, goods and services start b) Clear the cheque by taking in account value written in
declining consistently the phenomena is known as Deflation. words
Deflation occurs when the inflation rate falls below 0%. c) Clear the cheque by taking in account value written in
30) Which of the following is not a component of India’s digits
Foreign Exchange Reserves? d) Reject cheque and impose fine double the value of cheque
a) Gold e) None of the above
b) Special Drawing Rights (SDRs) Answer: b)
c) International Monetary Fund (IMF) reserve position As per section 18 of Negotiable Instrument Act, 1881 where
d) GOI Bonds issued overseas an amount is stated differently in figures and words in the
e) Foreign Currency assets cheque the banker will clear the cheque by taking in account,
Answer: d) the amount stated in words to be the amount undertaken or
The Foreign exchange reserves of India consists of below ordered value to be paid to the customer.
four categories; 33) RBI is the lender of last resort which means
1) Foreign Currency Assets _________.
2) Gold

a) RBI advances money to Government whenever there is 36) Recently, the Reserve Bank of India has allowed a
any emergency one-time restructuring of existing debt up to __________
b) Commercial banks has to keep their funds with the RBI for the companies.
d) It comes to help banks in times of crisis a) Rs. 50 Crore
d) All of the above b) Rs. 10 Crore
e) None of the above c) Rs. 100 Crore
Answer: c) d) Rs. 25 Crore
A lender of last resort is an institution, usually a country's e) Rs. 5 Crore
central bank that offers loans to banks or other eligible Answer: d)
institutions against eligible securities that are experiencing RBI has allowed a one-time restructuring of debt up to Rs. 25
financial difficulty or are considered highly risky or near Cr for the companies which have defaulted on payment, but
collapse. the loans have classified as standard assets. It will help
34) What is the effect of crossing a cheque in India? MSMEs which are facing a cash crunch due to
a) The payee can obtain payment only through a bank demonetization & GST implementation. The restructuring
account has to be implemented by 31st of March 2020.
b) The payee is compelled to open an account 37) As per the report from Commerce ministry, Defence
c) The payee will have to endorse the cheque to a bank Industries received Rs. 1.21 Crore FDI. Foreign Direct
d) All of the above Investment beyond _______ percentage has allowed
e) None of these through approval route in defence sector.
Answer: a) a) 26%
When a cheque is crossed, it means that it is an instruction by b) 74%
the client to not pay the cheque directly over the counter but c) 42%
to a banker only for crediting the payees account with the d) 49%
bank. e) 69%
35) In Economics, the term Twin Deficit refers Answer: d)
to______________ In defence sector, FDI beyond 49% has allowed via approval
a) Inflation + Fiscal Deficit route. FDI equity inflow of Rs 1.21 Cr has been reported in
b) Current Account Deficit + Fiscal Deficit the sector namely 'Defence Industries' during the period
c) Capital Account Deficit + Fiscal Deficit 2014-2018. In 2013-14, 2014-15 and 2015-16, defence
d) Primary Deficit + Capital Account Deficit industries had received $0.82 million, $0.08 million, and
e) Revenue Deficit + Fiscal Deficit $0.10 million foreign inflows, respectively.
Answer: b) 38) Recently, the central government has decided to offer
Twin Deficit= Current Account Deficit + Fiscal Deficit. ________ interest subsidy to merchant exporters to
In economics, a twin deficit occurs when a nation has both a boosting outbound shipment.
current account deficit and a fiscal deficit. You can also call a) 2%
twin deficits a double deficit. b) 4%
c) 6%

d) 5% 41) For which of the following debt instruments, not
e) 3% having a fixed rate of interest over the life of the
Answer: e) instrument, can ‘Floating Interest Rate’ be applied?
Government decided to offer 3% interest subsidy to merchant a) A loan
exporters, entailing an expenditure of Rs. 600 Cr to enhance b) A bond
liquidity with a view to boosting outbound shipment. c) A mortgage
Agriculture, textiles, leather, handicraft & machinery would d) A credit
be benefitted in this scheme. e) All of these
39) The centre has infused more than Rs. 51000 Crore in Answer: e)
PSBs till December 2018 out of the budgetary allocation An interest rate that is allowed to move up and down with
of _________ Crore for 2018-19. the rest of the market or along with an index. This contrasts
a) Rs. 60000 Crore with a fixed interest rate, in which the interest rate of a debt
b) Rs. 105000 Crore obligation stays constant for the duration of the agreement.
c) Rs. 85000 Crore A floating interest rate can also be referred to as a variable
d) Rs. 65000 Crore interest rate because it can vary over the duration of the debt
e) Rs. 90000 Crore obligation.
Answer: d) 42) Reserves which can act as liquidity buffer for
Centre has infused more than Rs 51,000 crore in public sector commercial banks during crisis times are ___________
banks till December 2018 out of the budgetary allocation of a) CAR
Rs 65,000 crore for 2018-19. Non-Performing Assets in the b) CRR
banking sector were close to Rs 10 lakh crore at the c) CAR and CRR
beginning of FY19. d) CRR and SLR
40) ICICI Bank and Small Business FinCredit have e) SLR
joined hand to provide a loan worth up to Rs. 1 Crore for Answer: d)
a tenure of ________ years per MSME customers. The RBI has mandated banks to set aside corporation of their
a) 10 deposits as statutory liquidity ratio (SLR) or the minimum
b) 12 amount it must hold in gold, cash or government bonds. In
c) 15 addition banks have to set aside a portion of their deposits as
d) 20 cash with the central bank, a requirement called the cash
e) 25 reserve ratio. These reserves can act as a liquidity buffer for
Answer: c) banks during crisis time.
ICICI Bank & Small Business FinCredit signed a MoU to 43) Which one of the following is not a salient feature of
provide credit to small & medium enterprises. The loans of debit card?
up to Rs. 1 Cr is for a tenure of 15 years per customer. ICICI a) No bad debts to banks and no suits for recovery
Bank will co-originate loan against property with SBFC at a b) No interest earning for banks
mutually agreed ratio. c) Works like a normal withdrawal slip
d) 45 days credit is given to the card holder

e) All of the above c) 50 thousand
Answer: d) d) 1 Lakh
A debit card (also known as a bank card or check card) is a e) None of these
plastic payment card that provides the cardholder electronic Answer: a)
access to their bank account(s) at a financial institution. Some Reserve Bank of India decided to treat deposits to over Rs.2
cards may bear a stored value with which a payment is made, crore as ‘bulk’ as they doubled the limit for the same from
while most relay a message to the cardholder's bank to the earlier Rs.1crore. This move will enhance operational
withdraw funds from a payer's designated bank account. The freedom of Banks. RBI also proposed banks would maintain
card, where accepted, can be used instead of cash when their bulk deposits interest rate cards in the core banking
making purchases. In some cases, the primary account system for supervisory review. National Federation of Urban
number is assigned exclusively for use on the Internet and Cooperative Banks and Credit Societies Limited (NAFCUB)
there is no physical card. has suggested this proposal. The decision in proposal for
44) Planning for Retirement Saving is a type of setting up an Umbrella Organization (UO) for urban
___________ cooperative banks in pending with RBI.
a) Banking Option 47) Under the Short-Term Training (STT) of the
b) Stock Market Option PMKVY,25.25 lakh candidates have been
c) Branding trained.PMKVY Stands for?
d) Financial Planning a) PradhanMantriKshetraVikasYojna
e) Mutual Fund Benefit b) Pradhan Mudra KhanijVikasYojna
Answer: d) c) PradhanMantriKaushalVikasYojna
Planning for Retirement Saving is a type of Financial d) Pradhan Mudra KaushalVikasYojna
Planning. e) None of these
45) What are masala bonds? Answer: c)
a) Rupee denominated domestic bonds 25.25 lakh candidates,out of the 37.32 lakh (aprrox.), have
b) Rupee denominated overseas bonds been trained under the Short-Term Training (STT)of the
c) Dollar denominated overseas bonds PradhanMantriKaushalVikasYojna (PMKVY). Similarly,
d) Dollar denominated domestic bonds 11.27 lakhunder Recognition of Prior Learning (RPL) and
e) None of these 0.8 lakh under Special Project in various sectors across
Answer: b) India.‘Skill Loan Mission’ has been launched by the
Masala bonds are rupee denominated overseas bonds. Masala Government to support youth by providing loan facility to
bonds will help to internationalize the Indian rupee and also individuals who wish to enrol for the skill development
deepen the Indian financial system. courses, as per the Skill Loan eligibility criteria.
46) How much is the new limit decided by RBI for Bulk 48) What is the new National Minimum Wage (NMW)
Deposits inorder to enhance operational freedom of per month for a worker, recently revised by an expert
Banks? committee appointed by Government of India?
a) 2 Crore a) Rs.8750 per month
b) 1 Crore b) Rs.9750 per month

c) Rs.7550 per month e) None of these
d) Rs.8550 per month Answer: b)
e) None of these A new micro insurance plan ‘Micro Bachat’ was launched by
Answer: b) the Life Insurance Corporation (LIC) of India. It provides a
An expert committee appointed by government suggested Rs. coverage of up to 2 lakhs and is the first micro-insurance plan
9,750 per month or Rs. 375 per day as National Minimum to do so.It provides both protection and savings and is a
Wage (NMW) for a worker. The Present NMW is Rs. regular premium, non-linked, participating endowment micro
4,576.National minimum wage gas been proposed at various insurance plan.
regional level in the range of Rs.8,892 to Rs. 11,622 per
month, with supplementary house rent allowance of Rs. 51) Which of the following is not a feature of gilt edged
1,430 per month for urban workers. securities?
49) Government of India, Himachal Pradesh Government a) Issued by non-governmental service organization
and World Bank had signed an agreement worth,how b) Issued by government entities
much million for supplying water to the citizens of c) Repayment of both principal and interest is secured
Greater Shimla? d) They have zero default risk
a) USD 20 Million e) All of them
b) USD 40 Million Answer: a)
c) USD 50 Million These securities are usually referred to as ‘gilt-edged’
d) USD 60 Million securities as repayments of principal as well as interest are
e) None of these totally secured, being the first charge on the nation’s purse.
Answer: b) Hence the Central Government securities are considered as
A loan agreement of $40 million (4 crore INR) was signed safest claims
between the Government of India, Himachal Pradesh 52) Which risk cannot be eliminated by diversification?
Government and World Bank, to help bring clean and reliable a) Portfolio risk
drinking water to the citizens of Greater Shimla area, who b) Systematic risk
have been facing severe shortages of water and water-borne c) Unsystematic risk
epidemics in the last few years.Shimla Water Supply and d) Business risk
Sewage Service Delivery Reform Programmatic e) Financial risk
Development Policy Loan is expected to improve Water Answer: b)
Supply & Sanitation (WSS) services in and around Shimla. Non-diversifiable risk is that part of total risk (which stems
50) Name the new micro insurance plan that will provide from various sources like interest rate risk, inflation risk,
coverage of up to 2 lakhs by the Life Insurance financial risk, etc) which is related to the general economy or
Corporation (LIC) of India? the stock market as a whole and hence cannot be eliminated
a) Micro Debit through diversification. Non-diversifiable risk is also referred
b) Micro Bachat to as market risk or systematic risk.
c) Micro Loan 53) Market risk premium in CAPM is defined as
d) Micro Fund a) Difference between market return and risk free rate

b) Difference between stock return and risk free rate else being equal, is more riskier than a company with lower
c) Difference between market return and stock return leverage.
d) Beta times the risk free rate 56) How much amount of swap facility as offered to
e) Beta times the market return banks by RBI to aid liquidity before the end of the
Answer: a) financial year?
The market risk premium is the difference between the a) $8 billion
expected return on a market portfolio and the risk-free rate. b) $4 billion
54) What can be a reason for the firm to have a high c) $5 billion
operating leverage d) $10 billion
a) Low fixed costs relative to variable costs e) $20 billion
b) High fixed costs relative to variable costs Answer: c)
c) High selling price per unit relative to others RBI offered a $5 billion swap facility to banks to aid liquidity
d) Low selling price per unit relative to others before the end of the financial year. The auction will happen
e) High total costs relative to selling price per unit on March 26 and the buy/sell swap will run up to March 28,
Answer: b) 2022, or for a three year duration.
Operating leverage is a measurement of the degree to which a 57) As per UIDAI, business organizations using Aadhar
firm or project incurs a combination of fixed and variable services will now have to pay how much amount for each
costs. customer?
High operating leverage. A large proportion of the a) Rs 15
company’s costs are fixed costs. In this case, the firm earns a b) Rs 5
large profit on each incremental sale, but must attain c) Rs 20
sufficient sales volume to cover its substantial fixed costs. If d) Rs 10
it can do so, then the entity will earn a major profit on all e) Rs 25
sales after it has paid for its fixed costs Answer: c)
55) A firm with a high financial leverage is characterized Business organizations using Aadhar services will now have
by to pay Rs 20 for each customer and 50 paise for
a) High operating risk authentication of each transaction carried out by the entities,
b) High debt to equity the UIDAI said.
c) High Earning per share 58) How much amount of additional loan financing was
d) High Sales signed by the World Bank,the Indian government and
e) High EBIT representatives of 5 states of Government of India for the
Answer: b) Dam Rehabilitation and Improvement Project?
The Financial Leverage ratio equals total assets divided by a) $135 million
total equity. The financial leverage ratio is a measure of how b) $137 million
much assets a company holds relative to its equity. A high c) $140 million
financial leverage ratio means that the company is using debt d) $145 million
and other liabilities to finance its assets -- and, everything e) $147 million

Answer: b) d) Individuals buying and selling the stock.
The World Bank, the Indian government and representatives e) Securities and Exchange Board of India
of 5 states of Government of India and Implementing Answer: d)
Agencies signed in New Delhi the Loan Agreement for The market price of a share of common stock is determined
Additional Financing of $137 million for the Dam by the market forces ie. Individuals buying and selling the
Rehabilitation and Improvement Project. stock.
59) According to labour Ministry, the income tax 62) Which of the following is not a reason why a company
exemption limit has been doubled to how much amount? may prefer debt financing to equity financing?
a) Rs 25 lakh a) Debt can be raised for finite time periods
b) Rs 15 lakh b) Debt, unlike equity finance, will not need to be secured
c) Rs 20 lakh against assets
d) Rs 10 lakh c) Debt is cheaper than equity finance
e) Rs 8 lakh d) Interest payments are tax-deductible
Answer: c) e) Debt finance can be raised more quickly than equity
The labour Ministry said that the income tax exemption limit finance
has been doubled to Rs 20 lakh .from the existing Rs 10 lakh, Answer: b)
a move that will benefit employees who are not covered by Debt, unlike equity finance, will not need to be secured
the Payment of Gratuity Act, 1972. against assets is not a reason why a company may prefer debt
60) India granted how much loan assistance million to financing to equity financing
Nepal for the reconstruction of infrastructures in the 63) High operating leverage of the firm indicates
areas of housing, education, health and cultural heritage? a) A small change in sales results in a large change in net
a) USD 250 million income.
b) USD 225 million b) A small change in sales results in a small change in net
c) USD 200 million income.
d) USD 100 million c) A small change in earnings before interest and taxes result
e) USD 350 million in a small change in net income.
Answer: a) d) A small change in net income results in a small change in
India has extended a grant assistance of up to USD 250 the firm's earnings before interest and taxes.
million to Nepal for the reconstruction of infrastructures in e) A small change in the number of units a firm produces and
the areas of housing, education, health and cultural heritage sells result in a similar change in the firm's earnings before
that was destroyed during the devastating April 2015 interest and taxes.
earthquake which saw the death of over 9,000 people. Answer: a)
61) The market price of a share of common stock is High operating leverage of the firm indicates a small change
determined by _____________ in sales results in a large change in net income
a) The board of directors of the firm. 64) With an aim to bring foreign policy to the masses the
b) The stock exchange on which the stock is listed. External Affairs Ministry has come up with an initiative
c) The president of the company. called SAMEEP. SAMEEP stands for _____________.

a) Students and Ministers Engagement Program channels through which lenders recovered their bad loans
b) Students and MEA Enrolment Program include the Insolvency and Bankruptcy Code (IBC),
c) Students and MEA Engagement Program SARFAESI Act, debt recovery tribunals (DRTs) and Lok
d) Students and MEA Encouragement Program Adalats.
e) Students and MEA Effort Program 67) State-owned United Bank of India announced that the
Answer: c) government has decided to infuse ___________ in the
With an aim to bring foreign policy to the masses the bank as part of Rs 28,615 crore capital infusion to be
External Affairs Ministry has come up with an initiative done in about half a dozen banks.
called SAMEEP - 'Students and MEA Engagement a) Rs 3,454 crore
Programme'. Under this MEA officials will talk to students to b) Rs 4,555 crore
help them better understand foreign policy. c) Rs 2,159 crore
65) Which of the following is not a function performed by d) Rs 5,654 crore
financial system? e) Rs 2,353 crore
a) Savings function Answer: c)
b) Liquidity function State-owned United Bank of India announced that the
c) Risk function government has decided to infuse Rs 2,159 crore in the bank
d) Social function as part of Rs 28,615 crore capital infusion to be done in about
e) Policy function half a dozen banks.
Answer: e) 68) As per the Financial Stability Report, gross non-
Saving function: Public saving find their way into the hands performing assets (GNPA) ratio of scheduled commercial
of those in production through the financial system. The banks (SCBs) has declined from 11.5% in March 2018 to
world’s financial markets provide liquidity (immediately ______ in September 2018.
spendable cash) for savers who hold financial instruments but a) 10.3%
are in need of money. Policy functions enable the regulators b) 11.1%
to take suitable measures through the market. Risk function c) 10.8%
where require instruments are provided to hedge against risk. d) 11.3%
66) According to the RBI data, what amount of bad loans e) 10.5%
banks has recovered in the fiscal ended March 2018? Answer: c)
a) Rs 40,400 crore As per the Financial Stability Report, gross non-performing
b) Rs 37,500 crore assets (GNPA) ratio of scheduled commercial banks (SCBs)
c) Rs 33,300 crore has declined from 11.5% in March 2018 to 10.8% in
d) Rs 42,500 crore September 2018
e) Rs 47,800 crore 69) According to the Central Statistics Office (CSO),
Answer: a) income earned by an average Indian per year doubled in
According to the RBI data, in the fiscal ended March 2018, 7 years. What is the income earned by an average Indian
banks recovered Rs 40,400 crore worth of bad loans as in 2018-19?
against Rs 38,500 crore recovered in FY17. The various a) Rs 1.45 lakh

b) Rs 96,500 of financial products or services who are compensated based
c) Rs 1.01 lakh on commissions may have significant incentives to sell
d) Rs 1.25 lakh investments or investment products based on how much they
e) Rs 86,000 can earn rather than what is suitable or what is needed by a
Answer: d) customer. Misselling may occur with insurance products,
The income earned by an average Indian doubled in 7 years, annuities, investments, mortgages and a variety of other
from Rs 63,642 per year in 2011-12 to Rs 1.25 lakh in 2018- financial products. A financial loss is not necessarily required
19, the first advance estimates of national income released by to meet the definition of misselling; the sale of an unsuitable
the Central Statistics Office (CSO) show. product is enough.
70) Central Statistics Office (CSO) stated that the growth 72) In the capital market, the term arbitrage is used with
in GDP during 2018-19 is estimated at _______. reference to__________
a) 7.4% a) Purchase of securities to cover the sale
b) 6.9% b) Sale of securities to reduce the loss on purchase
c) 7.2% c) The simultaneous purchase and sale of an asset to profit
d) 7.5% from an imbalance in the price
e) 8.1% d) Variation in different markets
Answer: c) e) All of the above
India Ratings and Research (Ind-Ra), a Fitch Group Answer: c)
Company, estimated India’s GDP growth could touch 7.5 % Arbitrage is the simultaneous purchase and sale of an asset to
in the financial year 2019-20 as against 7.2 % during current profit from an imbalance in the price. It is a trade that profits
fiscal i.e. 2018-19. India Ratings believes investments are by exploiting the price differences of identical or similar
slowly but steadily gaining traction with gross fixed capital financial instruments on different markets or in different
formation growing 12.2 % in FY19 and projected to clock forms.
10.3 % in FY20. 73) The availability or cash and other cash like
71) When an agent asks a customer to invest in a mutual marketable instruments that are useful in purchases and
fund product without telling him/her about the risks investments are commonly known as-?
involved in the investment, the process is termed a) Cash crunch
as_________ b) Liquidity
a) Mis-selling c) Credit
b) Undertaking d) Marketability
c) Misappropriation of funds e) None of the given options is true
d) cross-selling Answer: b)
e) None of the given options is true The availability or cash and other cash like marketable
Answer: a) instruments that are useful in purchases and investments are
Misselling is a significant problem in financial services commonly known as is liquidity.
industry and for financial industry regulators. Brokers,
financial advisors, bank representatives or other salespeople

74) In a company, the use of price-sensitive corporate In partnership with States, the Ministry of Rural
information by the company people to make gains or Development has completed 1.37 crore Rural homes since
cover losses is known as_________ April 2014.
a) Insider trading 77) According to International Monetary Fund’s (IMF)
b) Future trading World Economic Outlook Update,India to grow at how
c) Foreign trading much percent in 2019-20?
d) Stock trading a) 7.5%
e) None of the given options is true b) 7.0%
Answer: a) c) 7.7%
Insider trading is the trading of a public company's stock or d) 7.8%
other securities by individuals with access to non-public e) 7.9%
information about the company. In various countries, some Answer: a)
kinds of trading based on insider information is illegal. The International Monetary Fund’s (IMF) World Economic
75) The actual return of an investor is reduced sometimes Outlook Update released by chief economist Gita Gopinath
as the prices of the commodities go up all of a sudden. In recently said that India’s economy is expected to grow by 7.5
financial sector, this type of phenomenon is known as- per cent in the 2019-20 fiscal year, keeping an upward
a) Probability risk trajectory as the rest of the world slumps.
b) Market risk 78) How much amount was approved by the cabinet in
c) Inflation risk EXIM Bank through recapitalisation bonds to boost the
d) Credit risk bank’s capacity in export financing?
e) None of the given options is true a) Rs. 6000 crore
Answer: b) b) Rs. 6500 crore
Market risk is the possibility of an investor experiencing c) Rs. 7000 crore
losses due to factors that affect the overall performance of the d) Rs. 7500 crore
financial markets in which he or she is involved. Market risk, e) Rs. 8000 crore
also called "systematic risk," cannot be eliminated through Answer: a)
diversification, though it can be hedged against. The Union Cabinet approved capital infusion of Rs. 6000
76) In partnership with States, the Ministry of Rural crore in EXIM Bank through recapitalisation bonds to boost
Development has completed how many Rural Homes the bank’s capacity in export financing.
since April 2014? 79) Which denomination coins were released to mark the
a) 1.45 crore 102nd birth anniversary of late Tamil Nadu chief
b) 1.32 crore minister and ruling AIADMK founder MG
c) 1.85 crore Ramachandran?
d) 1.37 crore a) Rs 50 and Rs 100
e) 1.83 crore b) Rs 100 and Rs 5
Answer: d) c) Rs 350 and Rs 100
d) Rs 10 and Rs 350

e) Rs 10 and Rs 100 Answer: d)
Answer: b) Interest Rate is not a term associated with the stock markets
Two commemorative coins in the denomination of Rs 100 directly.
and Rs 5 were released to mark the 102nd birth anniversary 83) When Indian companies raise funds overseas what
of late Tamil Nadu chief minister and ruling AIADMK isthe process known is as?
founder MG Ramachandran which was celebrated across the a) Participatory notes
state. b) Foreign currency non-resident accounts
80) According to World Economic Survey, which country c) Foreign currency convertible bonds
has emerged as the biggest supporters of international d) Nostro accounts
aid? e) None of these
a) India Answer: c)
b) USA A foreign currency convertible bond (FCCB) is a type of
c) China convertible bond issued in a currency different than the
d) Russia issuer's domestic currency. In other words, the money being
e) Germany raised by the issuing company is in the form of a foreign
Answer: a) currency. A convertible bond is a mix between a debt and
Indians have emerged as the biggest supporters of equity instrument.
international aid, with a global public opinion survey putting 84) What is the duration of Public Provident Fund (PPF)
India on the top when it comes to people expecting their account?
nation to help other countries. a) 3 years
81) Which of the following is not considered as a means of b) 5 years
foreign capital inflow into the country? c) 9 years
a) FDI d) 15 years
b) FCNR accounts e) 18 year
c) FII Answer: d)
d) No frills account A PPF account matures in 15 years, but you can extend the
e) None of these tenure in blocks of five years after maturity. The balance
Answer: d) continues to earn interest at the normal rate. The minimum
No frills accounts is not considered as a means of foreign investment of Rs 500 has to be maintained even for accounts
capital inflow into the country. extended beyond 15 years.
82) Which of the following is not a term associated with 85) The availability of cash and other cash like
the stock markets directly? marketable instruments that are useful in purchases and
a) Bear hug investments are commonly known as
b) Dividend a) Cash crunch
c) Insider trading b) Liquidity
d) Interest rate c) Credit
e) Sensex d) Marketability

e) None of these a) Rs. 79 crores
Answer: b) b) Rs. 59 crores
Liquidity describes the degree to which an asset or security c) Rs. 90 crores
can be quickly bought or sold in the market without affecting d) Rs. 110 crores
the asset's price. e) Rs. 45 crores
86) The Reserve Bank of India raised the limit of Answer: b)
collateral-free agricultural loans to Rs. 1.6 lakh from the The Ministry of Environment launched a three-year Asiatic
current __________ with a view to help small and Lion Conservation Project in collaboration with the state of
marginal farmers. Gujarat. The Ministry of Environment, Forests and Climate
a) Rs. 1.5 lakh Change (MoEFCC) allocated Rs. 59 crores, Gujarat
b) Rs. 1.0 lakh government also implemented Rs. 80 crore for the project.
c) Rs. 1.3 lakh 89) Which company got the top spot in the `WPP and
d) Rs. 1.4 lakh Kantar Millward Brown's BrandZ 75 Most Valuable
e) Rs. 1.2 lakh Indian Brands' ranking?
Answer: b) a) Life Insurance Company
The Reserve Bank of India raised the limit of collateral-free b) TCS
agricultural loans to Rs. 1.6 lakh from the current Rs. 1 lakh c) HDFC
with a view to help small and marginal farmers. The central d) Flipkart
bank also decided to set up an internal working group (IWG) e) Paytm
to review agricultural credit and arrive at a workable policy Answer: c)
solution. HDFC Bank retained its top spot in the `WPP and Kantar
87) Reserve Bank of India decided to treat deposits to Millward Brown's BrandZ 75 Most Valuable Indian Brands'
over ______ as ‘bulk’ as they increased the limit for the ranking, with a rise of 21 per cent in its brand value to USD
same from the earlier _______. 21.7 billion. The new 2018 ranking has grown from 50 to 75
a) Rs.1 crore, Rs.50 lakhs brands to reflect the strength of India's growing economy and
b) Rs.2 crore, Rs.1.5 crore a marketplace in which more local brands are emerging to
c) Rs.2 crore, Rs.1 crore present consumers with increased choice. Insurance brand
d) Rs.1.5 crore, Rs.75 lakhs LIC comes in at the second spot ($19.8 billion), while Tata
e) Rs.5 crore, Rs.2.5 crore Consultancy Services ranked third ($15 billion).
Answer: c) 90) The Andhra Pradesh Government has launched
Reserve Bank of India decided to treat deposits to over Rs.2 which mobile platform, to enable small-scale farmers to
crore as ‘bulk’ as they doubled the limit for the same from market their produce at reasonable prices?
the earlier Rs.1crore. a) e-Bandhan
88) The Ministry of Environment launched a three-year b) e-Suraksha
Asiatic Lion Conservation Project in collaboration with c) e-Rythu
the state of Gujarat. What amount the ministry has d) e-Friendly
allocated for the project? e) e-Agri

Answer: c) e) 5-6
The Andhra Pradesh chief minister N. Chandrababu Naidu Answer: b)
has launched a mobile platform, e-Rythu (e-farmer in 4-6 (UPI PIN)digit pass code you create/set during first time
Telugu) to enable small-scale farmers to market their produce registration with UPI App
at reasonable prices. The objective of the ‘E-Rythu’ is to 94) According to the interim budget 2019, how many Jan
digitize agriculture marketplaces, payments, workflows, and Dhan bank accounts were opened in the last five years?
provide farmers with an easy and secure way to buy, sell & a) 30 crore
receive payments for agricultural products. b) 34 crore
91) If Indian govt. decides the level of Rupee to be 57 c) 29 crore
from 55 against 1 dollar, it is called ________. d) 50 crore
a) Depreciation e) 19 crore
b) Devaluation Answer: b)
c) Appreciation According to the interim budget 2019, in the last five years,
d) Revaluation nearly 34 crore Jan Dhan bank accounts were opened. It is
e) Demonetisation done to promote digital transactions and financial inclusion in
Answer: b) India. Under the scheme, the government has allowed people
Depreciation refers to a fall in the value of a currency due to to open bank accounts with no penalty on zero balance.
market changes while devaluation signifies the deliberate 95) What was the deposits criteria of 14 banks
reduction undertaken by a countries government to its own nationalized on 19th July, 1969?
currency. a) Over Rs. 1000 crores
92) When a bank removes bad loans from their balance b) Over Rs. 500 crores
sheets it is known as _______ loans. c) Over Rs. 100 crores
a) Overwriting d) Over Rs. 50 crores
b) Liability e) Over Rs. 200 crores
c) Underwriting Answer: d)
d) Writing-off 14 major Indian Scheduled Commercial Banks with deposits
e) Writing-on of over Rs. 50 crores nationalised ' to serve better the needs
Answer: d) of development of the economy in conformity with national
When a bank removes bad loans from its balance sheets it is policy objectives'.
known as Bank Write-off. By writing off the loans, the bank 96) Which of the following along with Bombay Stock
can reduce its overall tax liability. Exchange has launched the 'eATM' facility on 3
93) ________ (UPI PIN) digit pass code you create/set December 2018?
during first time registration with UPI App. a) HDFC Securities
a) 3-5 b) PNB Securities
b) 4-6 c) SBI Securities
c) 4-5 d) ICICI Securities
d) 3-4 e) Axis bank Securities

Answer: d) Answer: a)
ICICI Securities and Bombay Stock Exchange (BSE) has The Asian Development Bank (ADB) and the Government of
launched 'eATM' facility on 3 December 2018.Through India signed a $346 million loan to finance improvement of
'eATM' facility, clients of the domestic brokerage entity will over 400 kilometers of state highways that will enhance
be able to receive the pay-out within 30 minutes of selling the connectivity and access to economic centers across 12
shares.The new service would have a cap of Rs. 50,000 per districts in Karnataka.
client a day and would be applicable on about 600 stocks 99) According to Finance Minister ArunJaitley, Indian
listed on the BSE. economy grew by ____________ in the first quarter
97) The Defence Acquisition Council (DAC), chaired by (April-June) of the current fiscal, the highest in over two
Defence Minister SmtNirmalaSitharaman accorded years.
approval for procurement for the Services amounting to a) 7.2%
approximately ___________________ crores. b) 7.8%
a) Rs. 52,000 crores c) 8.6%
b) Rs. 87,000 crores d) 8.2%
c) Rs. 50,000 crores e) 8.4%
d) Rs. 46,000 crores Answer: d)
e) Rs. 10,000 crores Indian economy grew by 8.2% in the first quarter (April-
Answer: d) June) of the current fiscal, the highest in over two years. This
The Defence Acquisition Council (DAC), chaired by Defence announcement was made by Finance Minister, ArunJaitley.
Minister SmtNirmalaSitharaman accorded approval for The manufacturing sector grew by 13.5% which signals very
procurement for the Services amounting to approximately Rs. good turnaround in the sector.
46,000 crores. The DAC in a landmark decision approved 100) The government of India has doubled the monetary
procurement of 111 Utility Helicopters for the Indian Navy at limit to ___________ lakh rupees for filing loan recovery
a cost of over Rs. 21,000 crores. This is the first project under application in the DRT by banks and financial
the MoD’s prestigious Strategic Partnership (SP) Model that institutions.
aims at providing the significant fillip to the Government’s a) 20 lakh rupees
‘Make in India’ programme. b) 40 lakh rupees
98) The Asian Development Bank (ADB) and the c) 50 lakh rupees
Government of lndia signed a $346 million loan to finance d) 10 lakh rupees
improvement of over 400 kilometers of state highways e) 30 lakh rupees
that will enhance connectivity and access to economic Answer: a)
centers across 12 districts in__________ The government of India has doubled the monetary limit to
a) Karnataka 20 lakh rupees for filing loan recovery application in the Debt
b) West Bengal Recovery Tribunals (DRT) by banks and financial
c) Rajasthan institutions.
d) Maharashtra 101) Which of the following statement is/are correct
e) Andhra Pradesh regarding the MCLR?

a) It is the minimum interest rate of a bank below which it d) Receipts Deficit
cannot lend e) None of the above
b) It is an internal benchmark or reference rate for the bank Answer: a)
c) The MCLR methodology has replaced the base rate system The budget deficit is defined as the difference between the
d) The aim of MCLR is to improve the transmission of policy total receipts of the government and its total expenditure in a
rates into the lending rates of banks financial year as mentioned in the annual financial statement
e) All of the above of the government. If both are equal, there is said to be no
Answer: d) budget deficit for that financial year. Here, earning includes
The marginal cost of funds-based lending rate (MCLR) refers both revenue receipts and borrowing whereas expenditure
to the minimum interest rate of a bank below which it cannot includes interest payments as well.
lend, except in some cases allowed by the RBI. 104) Which of the following are correct regarding the
a) It is an internal benchmark or reference rate for the bank. Mutual Funds?
b) MCLR actually describes the method by which the I). Custodian of the Mutual Funds should be registered with
minimum interest rate for loans is determined by a bank. RBI
c) MCLR is decided on the basis of marginal cost or the II). Mutual Funds cannot invest in debt securities
additional or incremental cost of arranging one more rupee to III). In India, the Mutual Fund Industry started in 1991
the prospective borrower. a) Only I and II are correct
102) When an unlisted company makes ________, it seeks b) Only III is correct
to sell shares to the general public for the first time. c) Only II is correct
a) Follow-On Public Offering d) All are correct
b) Initial Public Offering e) None are correct
c) Offer for sale method Answer: e)
d) Private placement of securities A trust that pools together the savings of many individuals
e) Tender Method and then invest in capital market instruments are referred to
Answer: b) as Mutual Funds. Custodian of the Mutual Funds should be
Initial Public Offering (IPO) is made by a company for either registered with SEBI. Mutual Funds can invest in debt
the fresh issue of securities or sale of existing securities by an securities and other securities depending on the financial
unlisted company. IPO is made by an unlisted company for requirements of the investors. In India, mutual Fund industry
the first time in its duration of existence. It is a method of started in 1963, with the formation of Unit Trust of India as
raising funds by an unlisted company by offering securities to an initiative of the Government of India and the Reserve
the general public. Bank of India.
103) The difference between the total receipts of the 105) IFSC is an alpha-numeric code that uniquely
government and its total expenditure in a financial year is identifies a bank-branch participating in the NEFT
known as ________. system. How many digits are present in IFSC code?
a) Budget Deficit a) 11
b) Expenditure Deficit b) 12
c) Revenue Deficit c) 13

d) 17 marginal farmers. Under the scheme, vulnerable farmers with
e) 10 2 hectares of land will get direct income support of Rs. 6000
Answer: a) per year. It is expected to benefit 12 crore farmer families.
IFSC stands for Indian Financial System Code and is an 11 108) Govt. announced that individual taxpayers with
digit code. The first 4 alpha characters represent the bank, annual income up to Rs. ________ lakh will not have to
and the last 6 characters representing the branch. The 5th pay any Income Tax.
character is 0. a) 3
106) Which state has announced a hike of Rs 200 per b) 4
month in the social security pension under 'Madhu Babu c) 5
Pension Yojana', on 19 January 2019? d) 6
a) West Bengal e) 7
b) Uttar Pradesh Answer: c)
c) Odisha Government announced that individual taxpayers with annual
d) Maharashtra income up to Rs..5 lakh will not have to pay any Income Tax.
e) Gujarat Those with gross income of up to Rs.6.5 lakh also won't have
Answer: c) to pay any tax if they make investments in prescribed
On 19 January 2019, the Odisha government announced a methods. This will give Rs..18,500 cr tax benefit to 3 cr
hike of Rs 200 per month in the social security pension under middle class people. He also said that Income Tax returns
'Madhu Babu Pension Yojana'. About 48 lakh elderly, will be processed in 24 hours and refund initiated.
widows and destitute women will be benefited from the 109) What is premium of Pradhan Mantri Jeevan Jyoti
scheme. The pension holders will get a revised pension of Rs Bima Yojana?
500 per month against Rs 300 while people aged over 80 a) 330
years will get Rs 700 per month instead of Rs 500. b) 260
107)Under the Pradhan Mantri Kisan Samman Nidhi c) 350
(KISAN) scheme, vulnerable farmers with 2 hectares of d) 250
land will get direct income support of Rs. ________ per e) 450
year. Answer: a)
a) 4,000 Pradhan Mantri Jeevan Jyoti Bima Yojana is available to
b) 5,000 people between 18 and 50 years of age with bank accounts.
c) 6,000 The premium of Pradhan Mantri Jeevan Jyoti Bima Yojana is
d) 7,000 Rs 330.
e) 8,000 110) According to the Finance Minister, Piyush Goyal,
Answer: c) the fiscal deficit will be at ________ per cent of GDP in
Union Interim Finance Minister Piyush Goyal presented the 2019.
Interim Budget 2019-20 on Feb 1, 2019. Govt. has a) 2.8
introduced the Pradhan Mantri Kisan Samman Nidhi b) 3.1
(KISAN) scheme to provide assured income to small and c) 3.4

d) 3.5 113) When an agent asks a customer to invest in a mutual
e) 3.8 fund product without telling him/her about the risks
Answer: c) involved in the investment, the process is termed as-
Finance Minister Piyush Goyal said the fiscal deficit will be a) Mis-selling
at 3.4 per cent of GDP in 2019 while presenting the interim b) Undertaking
budget on Feb 1, 2019. He also said that current account c) Misappropriation of funds
deficit is likely to be 2.5 per cent of GDP this year. He added d) cross-selling
that capital expenditure is pegged at 3.36,292 lakh crore. e) None of the given options is true
111) The IFAD is an international financial institution Answer: a)
and a specialized agency of the United Nations dedicated Misselling is a significant problem in financial services
to eradicating poverty and hunger in rural areas of industry and for financial industry regulators. Brokers,
developing countries. IFAD stands for- financial advisors, bank representatives or other salespeople
a) International Fund for Agricultural Derivative of financial products or services who are compensated based
b) International Fund for Association Development on commissions may have significant incentives to sell
c) Indian Fund for Agricultural Development investments or investment products based on how much they
d) International Fund for Agricultural Development can earn rather than what is suitable or what is needed by a
e) International Financial for Agricultural Development customer. Misselling may occur with insurance products,
Answer: d) annuities, investments, mortgages and a variety of other
The International Fund for Agricultural Development (IFAD) financial products. A financial loss is not necessarily required
is an international financial institution and a specialized to meet the definition of misselling; the sale of an unsuitable
agency of the United Nations dedicated to eradicating product is enough.
poverty and hunger in rural areas of developing countries. 114) The stock market index of London, stock market is
112) What is an Indian depository receipt? referred as-
a) A deposit account with a public-sector bank a) Sensex
b) A depository account with any of the depositories in India b) Footsie
c) An instrument in the form of depository receipt created by c) Nifty
an Indian depository against underlying equity shares of the d) Bullish
issuing company e) None of the given options is true
d) An instrument in the form of deposit receipt issued by Answer: b)
Indian depositories The Financial Times Stock Exchange 100 Index, also called
e) None of the given options is true the FTSE 100 Index, FTSE 100, FTSE, or, informally, the
Answer: c) "Footsie", is a share index of the 100 companies listed on the
Indian depository receipt is an instrument in the form of London Stock Exchange with the highest market
depository receipt created by an Indian depository against capitalization.
underlying equity shares of the issuing company. 115) The availability or cash and other cash like
marketable instruments that are useful in purchases and
investments are commonly known as-?

a) Cash crunch 118) The GST on affordable housing properties without
b) Liquidity input tax credit(ITC) has been reduced to how much
c) Credit percent?
d) Marketability a) 2%
e) None of the given options is true b) 3%
Answer: b) c) 1%
The availability or cash and other cash like marketable d) 4%
instruments that are useful in purchases and investments are e) 5%
commonly known as is liquidity. Answer: c)
116) Fitch Solutions has projected the government's fiscal The GST on affordable housing properties without input tax
deficit to slip to ________% of GDP in 2019-2020 fiscal. credit(ITC) has been reduced to 1 percent, while effective
a) 3.2 GST of 5 per cent shall be applicable without ITC on
b) 3.4 residential properties outside affordable segment, as was
c) 3.6 decided by the GST Council at its 33rd meeting.
d) 3.8 119) The Affordable Housing is one where the value of
e) 4.0 the residential house/flat should be uptoRs.
Answer: c) _____________ in both metropolitan and non-
Fitch Solutions, an arm of the Fitch group has projected the metropolitan cities
government's fiscal deficit to slip to 3.6% of GDP in 2019- a) Rs. 15 lakh
2020 fiscal. It said that 2019-20 Budget will show a strong b) Rs. 25 lakh
populist bent in the run-up to the General election due by c) Rs. 45 lakh
May 2019. The central government is planning to spend a d) Rs. 65 lakh
total of Rs 27.8 lakh crore in fiscal 2019-20. e) Rs. 72 lakh
117) In December 2018, RBI limited total outstanding Answer: c)
External Commercial Borrowings(ECB) to how much A residential house/flat of carpet area of upto 90 sqm in non-
percent of GDP? metropolitan cities/towns and 60 sqm in metropolitan cities
a) 6.2 percent having value upto Rs.45 lacs (both for metropolitan and non-
b) 7.0 percent metropolitan cities).
c) 6.8 percent 120) The monthly income of the beneficiaries under the
d) 6.5 percent PradhanMantriShram Yogi Maandhan (PMSYM)
e) 5.7 percent Yojana should not exceed ______________
Answer: d) a) Rs. 15000
RBI announced a cap on the outstanding stock of external b) Rs. 20000
commercial borrowings at 6.5 percent of GDP at current c) Rs. 25000
market prices d) Rs. 18000
e) Rs. 16000
Answer: a)

The monthly income of the beneficiaries under the b) Insurance policies
PradhanMantriShram Yogi Maandhan (PMSYM) Yojana c) Mutual funds
should not exceed by Rs. 15000. This Scheme shall be open d) Sovereign wealth funds
only to the unorganised worker for joiningwhose monthly e) None of the given options is true
income is not exceeding fifteen thousand rupees, who has a Answer: d)
savings bank account in his name and, has Aadhar number A sovereign wealth fund (SWF) or sovereign investment fund
and Age should be between 18 years to 40 years is a state-owned investment fund that invests in real and
121) In a company, the use of price-sensitive corporate financial assets such as stocks, bonds, real estate, precious
information by the company people to make gains or metals, or in alternative investments such as private equity
cover losses is known as___________- fund or hedge funds. Sovereign wealth funds invest globally.
a) Insider trading 124) The actual return of an investor is reduced
b) Future trading sometimes as the prices of the commodities go up all of a
c) Foreign trading sudden. In financial sector, this type of phenomenon is
d) Stock trading known as-
e) None of the given options is true a) Probability risk
Answer: a) b) Market risk
Insider trading is the trading of a public company's stock or c) Inflation risk
other securities by individuals with access to nonpublic d) Credit risk
information about the company. In various countries, some e) None of the given options is true
kinds of trading based on insider information is illegal. Answer: b)
122) Many a times, we read a term ‘SEPA’ in financial Market risk is the possibility of an investor experiencing
newspapers. What is the full form of the SEPA? losses due to factors that affect the overall performance of the
a) Single Exchange Processing Agency financial markets in which he or she is involved. Market risk,
b) Single Euro Payments Area also called "systematic risk," cannot be eliminated through
c) Single Electronic Processing Agency diversification, though it can be hedged against.
d) Super Electronic Purchase Agency 125) ETFs are mutual funds listed and traded on stock
e) None of these exchanges like shares. ETFs stands for _____________
Answer: b) a) Electronic Traded Funds
The Single Euro Payments Area (SEPA) is a payment- b) Exchange Time Funds
integration initiative of the European Union for simplification c) Exchange Traded Finance
of bank transfers denominated in euro. d) Exchange Traded Flows
123) __________________ is a state-owned investment e) Exchange Traded Funds
fund that invests in real and financial assets such as Answer: e)
stocks, bonds, real estate, precious metals, or in Exchange Traded Funds (ETFs) are mutual funds listed and
alternative investments such as private equity fund or traded on stock exchanges like shares.
hedge funds. 126) To help boost liquidity particularly among small and
a) Development bonds marginal farmers in the farming sectors RBI has

announced to increase the limit on collateral-free data connectivity through SMS in areas where there is no
agriculture loans to what amount from Rs.1 lakh? Internet connectivity?
a) Rs.1.8 lakh a) MTNL
b) Rs.1.6 lakh b) Airtel
c) Rs.2.4 lakh c) Jio
d) Rs.2.8 lakh d) BSNL
e) Rs.2.2 lakh e) Idea
Answer: b) Answer: d)
To help boost liquidity particularly among small and BSNL has signed a partnership agreement with the French
marginal farmers in the farming sectors RBI has announced company Be-Bound to offer data connectivity through SMS
to increase the limit on collateral-free agriculture loans to in areas where there is no Internet connectivity.
Rs.1.6 lakh from Rs.1 lakh. 130) Which Indian bank recommended Unconditional
127) Reserve Bank of India has increased the limit of Cash Transfer to farmers to alleviate the agrarian
‘bulk’ amount to what to enhance operational freedom of distress instead of Universal Basic Income (UBI) scheme
Banks? in its Ecowrap report?
a) Rs. 1 crore a) Punjab National Bank
b) Rs. 2 crores b) ICICI Bank
c) Rs. 3 crores c) Bank of Baroda
d) Rs. 5 crores d) State Bank of India
e) Rs. 1.5 crores e) Allahabad Bank
Answer: b) Answer: d)
Reserve Bank of India has increased the limit of Rs. 1 crore State Bank of India recommended Unconditional Cash
deposits over Rs. 2 crores as ‘bulk’ as they doubled the limit Transfer to farmers to alleviate the agrarian distress instead
for the same from the earlier Rs.1crore. This move will of Universal Basic Income (UBI) scheme in its Ecowrap
enhance operational freedom of Banks. report.
128) Which payments platform acquired the Noida-based 131) EFTPOS (electronic funds transfer at point of sale)
last-minute hotel booking app, Night Stay? is based on___________
a) Paytm a) SMS Alerts
b) Mobikwik b) Debit Cards
c) PhonePe c) Credit Cards
d) GooglePay d) Both a) and b)
e) AmazonPay e) Both b) and c)
Answer: a) Answer: e)
Paytm acquired the Noida-based last-minute hotel booking EFTPOS - electronic funds transfer at point of sale- is an
app, Night Stay. electronic payment system involving electronic funds
129) Which Indian company has signed a partnership transfers based on the use of payment cards, such as debit or
agreement with the French company Be-Bound to offer credit cards, at payment terminals located at points of sale.

132) The transaction in which a bank guarantees the b) The Banking Companies Act–1949
payment in case of any damage or financial loss and c) Chit Fund Act–1982
accepts financial risk & liability is known as _______ d) Negotiable Instrument Act, 1881
a) Collateral e) Other than the given options
b) Underwriting Answer: d)
c) Letter of Credit Cheque and Demand Draft comes under Negotiable
d) Bank guarantee Instruments Act, 1881. A Negotiable Instrument means a
e) Other than the given option promissory note, bill of exchange, demand draft or cheque
Answer: b) payable either to order or to bearer.
The transaction in which bank guarantees the payment in 136) Which state government has been given the green
case of damage or financial loss and accepts financial risk & nod for its Rs. 13,384.80 crore Sita Rama Lift Irrigation
liability is known as Underwriting. Project?
133) Which term is used to describe a situation where an a) Andhra Pradesh
Inflation rate is high, the economic growth rates slow b) Telangana
down and unemployment remains steadily high? c) Kerala
a) Recession d) Manipur
b) Depreciation e) None of these
c) Stagflation Answer: b)
d) Depression Telangana government has been given the green nod for its
e) None of these Rs 13,384.80 crore Sita Rama Lift Irrigation Project that aims
Answer: c) to divert Godavari river water to irrigate 2.72 lakh hectare in
The term stagflation is used in economies to describe a three districts, a senior central government official said. The
situation where an inflation rate is high,the economics rate project, which is expected to be completed in three years,
slow down and unemployment remains steadily high. would lead to submergence of about 1,930 hectare area and
134) The term CBS network is often associated with 157 villages consisting of 9,696 families are likely to be
Banking Operations. What does the letter ‘C’ stand for in affected, the official added.
‘CBS’? 137) The government has recently allocated an additional
a) Central Rs. ________ at RE stage to MGNREGA.
b) Critical a) 2467 crore
c) Commercial b) 3826 crore
d) Core c) 4618 crore
e) Capital d) 6084 crore
Answer: d) e) None of these
CBS stands for - Core Banking Solution. Answer: d)
135) 'Cheque' and Demand Draft' come under the The Government of India has allocated an additional Rs.
purview of which of the following Acts ? 6,084 crore at RE stage to MGNREGA. This brings the total
a) Banking Regulation Act, 1949 allocation to the scheme to Rs. 61,084 crore in 2018-19,

making it the highest ever allocation. Governance reforms for export of products covered under 416 tariff lines
and thrust on sustainable livelihoods through durable assets identified under the scheme.
has ensured better lives for the poor through wages, incomes 140) RBI has recently flagged that bad loans under
and durable assets. MGNREGA is a flagship programme of PMMY have risen to Rs. _______ crore.
the Ministry which addresses poverty in a holistic manner by a) 7,000
overcoming social inequalities and creating a base for b) 9,000
sustainable & long term development. c) 11,000
138) The government decided to recapitalise state-owned d) 17,000
Exim Bank to the tune of Rs ________. e) None of these
a) 5000 crore Answer: c)
b) 6000 crore The Reserve Bank of India (RBI) has raised a red-flag on the
c) 7000 crore spike in non-performing assets (NPAs) under the
d) 8000 crore government’s flagship scheme to support micro enterprises in
e) None of these the country — the Pradhan Mantri Mudra Yojana. According
Answer: b) to Finance Ministry sources, RBI has cautioned the ministry
The government Wednesday decided to recapitalise state- that the scheme might turn-out to be the next big source of
owned Exim Bank to the tune of Rs. 6,000 crore and double NPAs, which have plagued the banking system. The
its authorised capital to Rs. 20,000 crore. The equity will be central bank has flagged that bad loans under PMMY have
infused in two tranches — Rs. 4,500 crore in 2018-19 and risen to Rs. 11,000 crore.
Rs. 1,500 crore in 2019-20. 141) What is the duration(years) after which a savings
139) The CCEA has given its approval to the proposal of account will be treated as inoperative/dormant if there
the Department of Commerce for including merchant are no transactions in the account?
exporters under the Interest Equalisation Scheme (IES) a) One
for Pre and Post Shipment Rupee Export Credit by b) Two
allowing them interest equalisation rate of _____. c) Three
a) 2% d) Four
b) 3% e) Five
c) 4% Answer: b)
d) 5% If a savings or current account has not had any
e) None of these transactions/activity for over one year, the account is
Answer: b) rendered inactive by the bank. Once this inactivity exceeds
The Cabinet Committee on Economic Affairs, chaired by the two years, banks declare such an account as dormant or
Prime Minister Shri Narendra Modi, has given its approval to inoperative.
the proposal of the Department of Commerce for including 142) The European Central Bank has launched a new
merchant exporters under the Interest Equalisation Scheme system aimed at letting banks settle payments instantly
(IES) for Pre and Post Shipment Rupee Export Credit by across Europe. What is the name of that system?
allowing them interest equalisation rate of 3% on such credit a) SWIFT

b) TIPS d) Lien
c) NEFT d) All of these
d) MPIJ Answer: d)
e) RTGS Lien is a type of charge that gives a bank automatic claim
Answer: b) over a borrower’s property or assets.
The European Central Bank launched a new system aimed at 146) India’s GDP would grow at what percent in 2018-19,
letting banks settle payments instantly across Europe, helping as per the first advance estimates of National Income at
them to compete with PayPal and other global tech giants. Constant (2011-12) and Current Prices, for the financial
The ECB’s TARGET Instant Payment Settlement (TIPS) year 2018-2019, released by Central Statistics Office
system will let people and companies in Europe transfer (CSO)?
euros to each other within seconds. a) 7.6 %
143) The web platform PAiSA has been designed and b) 7.2 %
developed by which of the following banks? c) 7.4 %
a) Allahabad Bank d) 7.7 %
b) UCO Bank e) None of these
c) ICICI Answer: b)
d) HDFC The Central Statistics Office (CSO) under the Ministry of
e) State Bank of India Statistics and Programme Implementation has released the
Answer: a) first advance estimates of National Income at Constant
The PAiSA - Portal for Affordable Credit and Interest (2011-12) and Current Prices, for the financial year 2018-
Subvention Access web platform has been designed and 2019. India’s GDP would grow at 7.2% in 2018-19, showing
developed by Allahabad Bank which is the Nodal bank. acceleration from 6.7% growth in 2017-18 because of push
144) ________ is the flow of funds (or capital) from one from agriculture and manufacturing sectors.
country to another in order to earn a short-term profit. 147) World Bank has projected India’s Gross domestic
a) Soft Currency product (GDP) to grow at what percent in the fiscal year
b) Hard Currency 2018-19, and 7.5% in the following two years?
c) Hot Money a) 7.3 %
d) Cheap Money b) 7.2 %
e) None of these c) 7.6 %
Answer: c) d) 7.7 %
Hot Money is the flow of funds (or capital) from one country e) None of these
to another in order to earn a short-term profit. Answer: a)
145) ____ is a type of charge that gives a bank automatic World Bank projected India’s GDP to grow at 7.3% in the
claim over a borrower’s property or assets. fiscal year 2018-19, and 7.5% in the following two years.
a) Pledge The Bank said India will continue to be the fastest growing
b) Hypothecation major economy in the world. In India, the growth has
c) Mortgage accelerated, driven by an upswing in consumption, and

investment growth has firmed as the effects of temporary 150) Prime Minister NarendraModi released a
factors wane, the World Bank said in its latest report. commemorative coin of _____ rupees on Guru Govind
148) GST Council approved doubling of exemption Singh ji in New Delhi on his 352nd birth anniversary, on
threshold under Goods and Services Tax (GST) regime to 13th January 2019?
Rs 40 lakh along with raising the turnover limit under a) Rs. 250
composition scheme to ______ with effect from April 1, b) Rs. 150
2019? c) Rs. 350
a) Rs. 1.5 crore d) Rs. 200
b) Rs. 2 crore e) None of these
c) Rs. 2.5 crore Answer: c)
d) Rs. 3 crore The 352nd birth anniversary of the 10th Sikh Guru, Guru
e) None of these Govind Singh ji, was celebrated as Prakashutsav at Patna
Answer: a) Sahib, in Bihar, the birth place of Guruji. On January 13,
Finance Minister ArunJaitley raised the annual turnover for 2019, Prime Minister NarendraModi released a
availing composition scheme to Rs. 1.5 crore from Rs. 1 commemorative coin of 350 rupees on Guru Govind Singh ji
crore effective from April 1, 2019 to provide relief to small in New Delhi on the eve of 352nd birth anniversary of the
businesses under Goods and Services (GST) regime. The 10th Sikh Guru.
Goods and Services (GST) exemption limit has been doubled 151) PradhanMantriVayaVandanaYojana (PMVVY)’
to Rs. 40 lakh annual turnover and Rs 20 lakh for aims to provide social security during old age. What is the
northeastern states. minimum purchase price under the scheme for a
149) Which will be the first Indian state to roll out minimum pension of Rs. 1,000/- per month ?
Universal Basic Income (UBI) and implement the scheme a) Rs.1,20,000
by 2022? b) Rs.1,00,000
a) Telangana c) Rs.1,25,000
b) Gujarat d) Rs.1,50,000
c) Sikkim e) Rs. 2,50,000
d) Arunachal Pradesh Answer: d)
e) None of these PradhanMantriVayaVandanaYojana (PMVVY)’ aims to
Answer: c) provide social security during old age and to protect elderly
Sikkim,though being a smallest state have set a initiative to persons aged 60 and above. Minimum purchase price under
introduce UBI in the entire nation.Sikkim’s long lasting chief the scheme is Rs.1,50,000/- for a minimum pension of Rs.
minister and head of sikkim’s ruling party(Sikkim democratic 1,000/- per month
front) Pawankumarchamling, quoted that if everything goes 152) Beta measures what type of risk?
right then Sikkim would be the first state to implement a) Financial risk
Universal Basic Income (UBI) system and execute it by b) Currency risk
2022.This scheme is also regarded as an alternative to social c) Investment risk
welfare programmes with benefits towards reducing poverty. d) Market and finance risk

e) Market risk a) Informal banking
Answer: c) b) Indigenous banking
Beta of an investment indicates whether the investment is c) Shadow banking
more or less volatile than the market as a whole. In general, a d) Development banking
beta less than 1 indicates that the investment is less volatile e) Adaptive Banking
than the market, while a beta more than 1 indicates that the Answer: c)
investment is more volatile than the market. The shadow banking system is a term for the collection of
153) An option that may only be exercised on expiration non-bank financial intermediaries that provide services
is known as ? similar to traditional commercial banks but outside normal
a) Put Option banking regulations. The phrase "shadow banking" contains
b) European Option the pejorative connotation of back alley loan sharks.
c) Call Option 156) “Shishu” scheme under ‘PradhanMantri Mudra
d) American Option Yojana’ covers loan upto which limit?
e) None of the above a) Rs. 100,000
Answer: b) b) Rs. 50,000
European option – an option that may only be exercised on c) Rs. 500,000
expiration.American option – an option that may be exercised d) Rs. 200,000
on any trading day on or before expiry. Call Option – gives e) Rs. 250,000
the buyer of option the right ( not obligation) to buy a Answer: b)
currency or share. Put Option - gives the buyer of option the Under PradhanMantri Mudra Yojana, 3 types of schemes-
right (not obligation) to sell a currency or share. Shishu, Kishor, Tarun has been launched. Shishu scheme
154) In which of the following types of cheques, the covers loan uptoRs. 50,000.
person whose name is written by the issuer, is the only 157) What is Marginal Standing Facility (MSF) rate and
person authorized to collect the amount? Statutory Liquidity Ratio (SLR) as per ‘First Bi-Monthly
a) Slate Cheque Monetary Policy’ released recently?
b) Anti-dated cheque a) 6.50% and 19.50%
c) Bearer Cheque b) 6.25% and 19.25%
d) Blank cheque c) 6.75% and 19.75%
e) Order Cheque d) 6.50% and 19.25%
Answer: e) e) 5.75% and 18.50%
Order cheque is issued to only that person whose name is Answer: b)
written on the cheque by the issuer. Identification is required In February 2019, Reserve Bank of India (RBI)’s six-member
at the time of presenting the cheque to the bank. monetary policy committee chaired by RBI Governor
155) In the financial sector there are many companies Shaktikanta Das released its First Bi-Monthly Monetary
who are providing banking like activities though they are Policy. RBI had reduced 0.25 basis points in the Policy Rates
not recognized as banks. How is this particular type of with immediate effect. The Change in Policy rates are as
activity known as? follows: Repo Rate: 6.00% , Reverse Repo Rate: 5.75%,

Marginal Standing Facility Rate: 6.25%, Bank Rate: 6.25%, 160) The GST council has decided to offer cash back to
Cash Reserve Ratio (CRR): 4%, Statutory Liquidity Ratio consumers. What is the maximum limit of cashback on
(SLR): 19.25%. payments via Rupay cards, BHIM and UPI system once
158) In September 2018, the New Development Bank of the offer is implemented?
the BRICS countries has approved a $525-million loan to a) Rs. 25
____________ for infrastructure projects. b) Rs. 50
a) Madhya Pradesh c) Rs. 100
b) West Bengal d) Rs. 75
c) Bihar e) Rs. 150
d) Uttarakhand Answer: c)
e) Assam Once the offer is implemented, the customers making
Answer: a) payments through Rupay card and BHIM UPI would get a
The New Development Bank of the BRICS countries has cashback of 20% of the total GST amount, subject to a
approved a $525-million loan to Madhya Pradesh for maximum limit of Rs 100.The Goods and Services Tax
infrastructure projects. (GST) Council decided to offer cash back to consumers on a
The loan would be used by the Indian government for on- trial basis for every digital payment made via Rupay cards,
lending to the Madhya Pradesh government for rehabilitating BHIM application and UPI system to promote cashless
major district roads with a total length of about 2,000 km to transactions in rural semi-urban areas.
improve the connectivity of the rural interior with the 161) Which among the following is a condition of slow
national and state highway networks. economic growth and relatively high unemployment?
159) In September 2018, the government has doubled the a) Deflation
monetary limit to __________ for filing loan recovery b) Bottleneck Inflation
application in the Debt Recovery Tribunals. c) Stagflation
a) Rs. 25 Lakh d) Reflation
b) Rs. 10 Lakh e) Creeping Inflation
c) Rs. 30 Lakh Answer: c)
d) Rs. 5 Lakh Stagflation is a condition in which the inflation rate is high,
e) Rs. 20 Lakh economic growth rate slows, and unemployment remains
Answer: e) steadily high.
The government doubled the monetary limit to 20 lakh It can also be defined as inflation and a decline in gross
rupees for filing loan recovery application in the Debt domestic product. It occurs when an economy faces a sudden
Recovery Tribunals by banks and financial institutions.It is increase or decrease in the supply of a commodity or service.
aimed at helping reduce pendency of cases in DRTs. There Reflation - It is a monetary or fiscal policy by the
are 39 DRTs in the country.The government has made government and central bank respectively to boost demand
several amendments in different laws, including the and thus increase the level of economic activity and combat
SARFAESI Act to make the tribunals more effective and to deflation.
facilitate fast disposal of debt recovery cases.

Creeping Inflation - A circumstance where the inflation of a needs to apply within a matter of 30 days from the date it
nation increases gradually, but continually over time is called becomes payable.
Creeping Inflation. 164) What is the projected growth rate of India for the
162) Under AtalBimitVyaktiKalyanYojana, the financial year 2019-20 by the International Monetary
unemployed persons who searching for new employment Fund (IMF)?
can get 25% of his/her average earning of _________ days a) 7.3%
as a cash benefit. b) 7.5%
a) 60 days c) 7.2%
b) 180 days d) 7.6%
c) 30 days e) 7.8%
d) 45 days Answer: b)
e) 90 days The International Monetary Fund forecasted the growth rate
Answer: e) of India for 2019-20 is 7.5%. IMF said that India’s growth
The ESI Corporation has approved rate likely to accelerate to 7.7% in 2020-21. Central Statistics
‘AtalBimitVyaktiKalyanYojana’ for Insured Persons (IP) Office’s (CSO) estimated the growth rate of 7.2% for 2018-
covered under the Employees’ State Insurance Act, 1948. 19 and the RBI estimates the growth rate of 7.4%.
This scheme is a relief payable in cash directly to the Bank 165) Which of the following is also known as “Reserve
Account in case of unemployment and while they search for Money”?
new engagement. Under AtalBimitVyaktiKalyanYojana, the a) M1
cash benefit given to the unemployed persons searching for b) M0
new employment would be 25% of his average earning of 90 c) M2
days. d) M3
163) As per the Payment of Gratuity Act, 1972 an e) M4
employee is eligible to get gratuity only after he/she has Answer: b)
worked with an organization for at least ________ years. Reserve money (M0) = Currency in Circulation + Bankers’
a) 5 years Deposits with RBI + ‘Other’ Deposits with RBI. It is also
b) 10 years called as high powered money, base money and central bank
c) 3 years money. All these names suggest that reserve money
d) 15 years represents the base level for money supply or it is the high-
e) 8 years powered component of money supply.
Answer: a) 166) In September 2018, the government has announced
The Payment of Gratuity Act, 1972, states that an employee that all formal sector workers earning a monthly salary
is eligible to get gratuity only after he/she has worked with an below __________ have to link their Provident Fund
organization for at least five years. The employee stands to accounts with Aadhar numbers.
receive the gratuity amount on his/her superannuation, or at a) Rs. 15000
the time of retirement or resignation. The rules state that b) Rs. 20000
when an employee is eligible to get a gratuity, the individual c) Rs. 30000

d) Rs. 10000 169) Union government has recently signed $85 million
e) Rs. 25000 loan agreement with which financial agency to promote
Answer: a) skill development in Odisha?
All formal sector workers earning a monthly salary below Rs. a) World Bank
15000 should link their provident fund (PF) accounts with b) International Monetary Fund
their Aadhaar numbers. PF accounts are managed by the c) Asian Development Bank
Employees' Provident Fund Organisation (EPFO). At present, d) New Development Bank
the minimum pension under EPS (Employees' Pension e) None of these
Scheme) is Rs. 1000 per month and an employee can receive Answer: c)
a pension only after a minimum of 10 years of service. In December, 2018, the Government of India and the Asian
167) The workers of the unorganized sector would get an Development Bank (ADB) signed a $85 million loan in New
assured monthly pension of Rs 3,000 under the Delhi, under the Odisha Skill Development Project to
PradhanMantriShram-Yogi Maandhan scheme, after promote skill development in Odisha. Under this project, the
they attain the age of ______________. World Skill Center (WSC), an advanced skill training centre
a) 70 Years would be established in Bhubaneswar, Odisha.
b) 60 Years 170) Which state launched the Rs 50,000-crore farm debt-
c) 65 Years waiver scheme named ‘Jai KisanRinMuktiYojana’ on 15
d) 62 Years January 2019
e) 58 Years a) Madhya Pradesh
Answer: b) b) Uttar Pradesh
As per Interim Budget, 2019-20, the workers of the c) Arunachal Pradesh
unorganized sector would get an assured monthly pension of d) Andhra Pradesh
Rs. 3,000 under the PradhanMantriShram-Yogi Maandhan e) Himachal Pradesh
scheme, after they attain the age of 60 years. Answer: a)
168) Reserve Bank of India has announced to Madhya Pradesh’s Chief Minister Kamal Nath launched the
operationalize ‘Net stable funding ratio (NSFR)’ norms Rs 50,000-crore farm debt-waiver scheme named ‘Jai
for banks from which date? KisanRinMuktiYojana’ on 15 January 2019. The state
a) 1 January, 2019 cabinet gave its nod to waive crop loans of 55 lakh small and
b) 1 February, 2019 marginal farmers on 5 January 2019. The loan waiver forms
c) 1 April, 2020 could be submitted till 5 February 2019 and farmers would
d) 1 June, 2019 start getting the benefits from 22 February 2019.
e) 1 June, 2020 171) PradhanMantriVayaVandanaYojana (PMVVY) is a
Answer: c) pension plan for senior citizens managed and operated by
RBI announced the date of its implementation of the Net Life Insurance Corporation (LIC). Under this scheme
Stable Funding Ration (NSFR) norms to be from April 1, pension will be paid for how many years?
2020. a) 5 years
b) 10 years

c) 6 years The Over the Counter Exchange of India (OTCEI)
d) 7 years The Inter-Connected Stock Exchange of India (ISE)
e) 8 years 174) What does the term 'Financial Exclusion' refers to,
Answer: b) in banking system?
PradhanMantriVayaVandanaYojana (PMVVY) was launched a) Exclude the Finance
by the Government of India in 2017. PMVVY is a pension b) Lack of Access to Financial Services
scheme for senior citizens aged 60 years and above. Life c) Overlooking financial impacts of the services.
Insurance Corporation (LIC) of India has been authorized by d) Instability of Financial Services
the government of India to implement the PMVVY. It e) None of the above
provides an assured return of 8% p.a. payable monthly for 10 Answer: b)
years. Financial exclusion can be defined as the unavailability of
172) Which of the following is an internationally banking services to people with low or non-income. It is
recognized identification code for banks around the believed to be one factor preventing poor people leave out
world, commonly used for international wire transfers? poverty.
a) BIN Code 175) The stock exchanges are defined under which of the
b) IFCS code following acts?
c) IBC code a) Companies Act, 2013
d) Swift Code b) SEBI Act, 1992
e) CHIPS c) SCRA, 1956
Answer: d) d) RBI Act, 1934
Swift- Society for Worldwide Interbank Financial e) None of the above
Telecommunication code.An internationally recognized Answer: c)
identification code for banks around the world. SWIFT codes Stock Exchange are defined under Securities Contract
are most commonly used for international wire transfers and (Regulation) Act, 1956 [SCRA] They are defined as anybody
are comprised of 8 or 11 alphanumeric characters. of individuals, whether incorporated or not, constituted for
173) Which of the following exchange/s comes under the the purpose of assisting, regulating or controlling the
Indian Secondary Market? business of buying, selling or dealing in securities. Stock
a) Regional stock exchanges exchange could be a regional stock exchange whose area of
b) BSE and NSE operation/jurisdiction is specified at the time of its
c) Over the Counter Exchange of India recognition or national exchanges, which are permitted to
d) The Inter-Connected Stock Exchange of India have nationwide trading since inception.
e) All of the above 176) Which of the following bank has decided to link
Answer: e) interest rates on the savings bank account to an external
The Indian secondary market now has a four-tier form as benchmark from 1st May 2019?
follows: a) HDFC Bank
Regional stock exchanges b) Indian Overseas Bank
The National Stock Exchanges (BSE and NSE) c) Union Bank of India

d) State Bank of India bank accounts of beneficiary farmers, in three equal
e) Bank of Baroda instalments of Rs. 2,000 each. This programme will be
Answer: d) funded by Government of India. Around 12 crore small and
State Bank of India (SBI) has decided to link interest rates on marginal farmer families are expected to benefit from this.
the savings bank account to an external benchmark from 1st The programme would be made effective from 1st December
May 2019. With this SBI becomes the first Indian bank to 2018 and the first instalment for the period up to 31st March
link both deposit rate and lending rate to an external 2019. This programme will entail an annual expenditure of
benchmark. Rs. 75,000 crore.
177) How many rupees will be transferred by the Reserve 179) As per the Interim Budget, what was India’s Debt to
Bank of India (RBI) as an interim surplus to the central GDP ratio in the year 2017-18?
government for the half-year (till 31st December 2018)? a) 46.5%
a) 28000 crores b) 44.4%
b) 10000 Crores c) 40%
c) 50000 Crores d) 45%
d) 2000 Crores e) 42%
e) 1000 Crores Answer: a)
Answer: a) India’s Debt to GDP ratio was 46.5% in year 2017-18. The
The Reserve Bank of India (RBI) will transfer an interim FRBM Act prescribes that the Debt to GDP ratio of the Govt
surplus of 28,000 crore rupees to the central government for of India should be brought down to 40% by 2024-25.
the half-year (ended 31st December 2018).The decision has 180) How much amount has been allocated for
been based on a limited audit review and after applying the 'PradhanMantriShram-Yogi Maandhan' in the Interim
extent economic capital framework. Budget 2019-20?
178) The “PradhanMantriKisanSammanNidhi (PM- a) 400 crore
KISAN)” will cost the government ________ per year. b) 450 crore
a) Rs 15,000 crore c) 500 crore
b) Rs 30,000 crore d) 600 crore
c) Rs 40,000 crore e) 750 crore
d) Rs 60,000 crore Answer: c)
e) Rs 75,000 crore The Government has proposed to launch a mega pension
Answer: e) yojana 'PradhanMantriShram-Yogi Maandhan' for the
To provide an assured income support to the small and unorganised sector workers with monthly income uptoRs.
marginal farmers, Government is launching a programme 15,000. This pension yojana shall provide them an assured
namely “PradhanMantriKisanSammanNidhi (PM-KISAN)”. monthly pension of Rs. 3,000 from the age of 60 years on a
Under this programme, vulnerable landholding farmer monthly contribution of a small affordable amount during
families, having cultivable land upto 2 hectares, will be their working age. A sum of Rs. 500 crore has been allocated
provided direct income support at the rate of Rs. 6,000 per for the Scheme.
year. This income support will be transferred directly into the

181) An organization such as a bank or insurance in the year 1988. SEBI is the regulator of Capital Market in
company that buys and sells large quantities of securities India.
is called __________ 184) Currency swap is an instrument to manage ______
a) Major Investor a) Interest rate and currency risk
b) Minor Investor b) Currency risk
c) Institutional Investor c) Interest rate risk
d) Giant d) Cash flows in different currency
e) None of these e) None of these
Answer: c) Answer: d)
Institutional investor is a term for entities which pool money A currency swap (or a cross currency swap) is a foreign
to purchase securities, real property, and other investment exchange derivative between two institutions to exchange the
assets or originate loans. Institutional investors include principal and/or interest payments of a loan in one currency
banks, insurance companies, pensions, hedge funds, for equivalent amounts, in net present value terms, in another
investment advisors, endowments, and mutual funds. currency.
182) A receipt listed in India and traded in rupees 185) What is the minimum capital requirement for new
declaring ownership of shares of a foreign company is on tap license to set up Private Banks?
called _______. a) Rs. 200 crore
a) Indian Depository Receipt (IDR) b) Rs. 300 crore
b) Commercial Paper c) Rs. 500 crore
c) Promissory Note d) Rs. 600 crore
d) Indian Depository Revenue e) None of these
e) None of these Answer: c)
Answer: a) As per RBI guidelines, minimum capital requirement for
A receipt listed in India and traded in rupees declaring New on tap license to set up Private Banks is Rs. 500 crore.
ownership of shares of a foreign company is known as Indian Validity of the in-principle approval issued by the RBI will
Depository Receipt (IDR). be 18 months from the date of granting in-principle approval.
183) Which one of the following is the regulator of 186) Up to what amount of existing debt the Reserve
Capital Market in India? Bank has allowed a one-time restructuring for the
a) RBI companies which have defaulted on payment, but the
b) SEBI loans given to them have continued to be classified as
c) SIDBI standard assets?
d) IRDA a) Rs. 20 crore
e) NSE b) Rs. 25 crore
Answer: b) c) Rs. 15 crore
The Securities and Exchange Board of India (SEBI) is the d) Rs. 10 crore
regulator for the securities market in India. It was established e) Rs. 50 crore
Answer: b)

Reserve Bank allowed a one-time restructuring of existing d) 45 lakh rupees
debt up to Rs. 25 crore for the companies which have e) 30 lakh rupees
defaulted on payment but the loans given to them have Answer: a)
continued to be classified as standard assets. The 32nd Meeting of GST Council was concluded in New
187) IRCTC, the Railways’ subsidiary, will offer Delhi. The Limit of annual turnover for composition scheme
insurance of up to INR ______ for free for air passengers increased to 1.5 crore rupees effective from April 1, 2019.
who book their tickets through its portal. The Council has decided to increase the GST registration
a) 25 lakh threshold limit to 40 lakh rupees from 20 lakh.
b) 10 lakh 190) The government has announced __________ rupee
c) 50 lakh award for states that would complete the household
d) 5 lakh electrification early under the Saubhagaya scheme.
e) 35 lakh a) 200 crore
Answer: c) b) 50 crore
Indian Railway Catering and Tourism Corporation (IRCTC), c) 150 crore
the Railways’ subsidiary, will offer insurance of up to INR50 d) 10 crore
lakh for free for air passengers who book their tickets through e) 100 crore
its portal. IRCTC has tied up with Bharti-Axa for the offer. Answer: e)
188) Sri Lanka’s Central Bank announced that the The government has announced 100 crore rupee award for
Reserve Bank of India (RBI) has agreed to provide states that would complete the household electrification early
________ under a swap arrangement to boost the island under the Saubhagaya scheme. Apart from discoms,
nation’s reserves. employees would also collectively get 50 lakh rupees award
a) USD 400 million for completing the task of electrifying households under the
b) USD 100 million scheme.
c) USD 200 million 181) An organization such as a bank or insurance
d) USD 300 million company that buys and sells large quantities of securities
e) USD 250 million is called __________
Answer: a) a) Major Investor
Sri Lanka’s Central Bank announced that the Reserve Bank b) Minor Investor
of India (RBI) has agreed to provide USD 400 million under c) Institutional Investor
a swap arrangement to boost the island nation’s reserves. d) Giant
189) The 32nd Meeting of GST Council was concluded in e) None of these
New Delhi. The Council has decided to increase the GST Answer: c)
registration threshold limit to ____________ from 20 lakh Institutional investor is a term for entities which pool money
rupees. to purchase securities, real property, and other investment
a) 40 lakh rupees assets or originate loans. Institutional investors include
b) 35 lakh rupees banks, insurance companies, pensions, hedge funds,
c) 38 lakh rupees investment advisors, endowments, and mutual funds.

182) A receipt listed in India and traded in rupees 185) What is the minimum capital requirement for new
declaring ownership of shares of a foreign company is on tap license to set up Private Banks?
called _______. a) Rs. 200 crore
a) Indian Depository Receipt (IDR) b) Rs. 300 crore
b) Commercial Paper c) Rs. 500 crore
c) Promissory Note d) Rs. 600 crore
d) Indian Depository Revenue e) None of these
Answer: a) As per RBI guidelines, minimum capital requirement for
A receipt listed in India and traded in rupees declaring New on tap license to set up Private Banks is Rs. 500 crore.
ownership of shares of a foreign company is known as Indian Validity of the in-principle approval issued by the RBI will
Depository Receipt (IDR). be 18 months from the date of granting in-principle approval.
183) Which one of the following is the regulator of 186) Up to what amount of existing debt the Reserve
Capital Market in India? Bank has allowed a one-time restructuring for the
a) RBI companies which have defaulted on payment, but the
b) SEBI loans given to them have continued to be classified as
c) SIDBI standard assets?
d) IRDA a) Rs. 20 crore
e) NSE b) Rs. 25 crore
Answer: b) c) Rs. 15 crore
The Securities and Exchange Board of India (SEBI) is the d) Rs. 10 crore
regulator for the securities market in India. It was established e) Rs. 50 crore
in the year 1988. SEBI is the regulator of Capital Market in Answer: b)
India. Reserve Bank allowed a one-time restructuring of existing
184) Currency swap is an instrument to manage ______ debt up to Rs. 25 crore for the companies which have
a) Interest rate and currency risk defaulted on payment but the loans given to them have
b) Currency risk continued to be classified as standard assets.
c) Interest rate risk 187) IRCTC, the Railways’ subsidiary, will offer
d) Cash flows in different currency insurance of up to INR ______ for free for air passengers
e) None of these who book their tickets through its portal.
Answer: d) a) 25 lakh
A currency swap (or a cross currency swap) is a foreign b) 10 lakh
exchange derivative between two institutions to exchange the c) 50 lakh
principal and/or interest payments of a loan in one currency d) 5 lakh
for equivalent amounts, in net present value terms, in another e) 35 lakh
currency. Answer: c)

Indian Railway Catering and Tourism Corporation (IRCTC), c) 150 crore
the Railways’ subsidiary, will offer insurance of up to INR50 d) 10 crore
lakh for free for air passengers who book their tickets through e) 100 crore
its portal. IRCTC has tied up with Bharti-Axa for the offer. Answer: e)
188) Sri Lanka’s Central Bank announced that the The government has announced 100 crore rupee award for
Reserve Bank of India (RBI) has agreed to provide states that would complete the household electrification early
________ under a swap arrangement to boost the island under the Saubhagaya scheme. Apart from discoms,
nation’s reserves. employees would also collectively get 50 lakh rupees award
a) USD 400 million for completing the task of electrifying households under the
b) USD 100 million scheme.
c) USD 200 million
d) USD 300 million 191) ASBA scheme is related to the purchase of ____.
e) USD 250 million a) IPO
Answer: a) b) BCP
Sri Lanka’s Central Bank announced that the Reserve Bank c) CCD
of India (RBI) has agreed to provide USD 400 million under d) DTCs
a swap arrangement to boost the island nation’s reserves. e) None of these
189) The 32nd Meeting of GST Council was concluded in Answer: a)
New Delhi. The Council has decided to increase the GST ASBA (Applications Supported by Blocked Amount) is a
registration threshold limit to ____________ from 20 lakh process developed by the India's Stock Market Regulator
rupees. SEBI for applying to IPO. In ASBA, an IPO applicant's
a) 40 lakh rupees account doesn't get debited until shares are allotted to them.
b) 35 lakh rupees 192) A rise in Sensex means ___________.
c) 38 lakh rupees a) A rise in prices of shares of all companies registered with
d) 45 lakh rupees BSE
e) 30 lakh rupees b) A rise in prices of shares of all companies registered with
Answer: a) NSE
The 32nd Meeting of GST Council was concluded in New c) An overall rise in prices of top 30 shares of group of
Delhi. The Limit of annual turnover for composition scheme companies registered with BSE.
increased to 1.5 crore rupees effective from April 1, 2019. d) A rise in prices of shares of all companies belonging to a
The Council has decided to increase the GST registration group of companies registered with BSE.
threshold limit to 40 lakh rupees from 20 lakh. e) None of these
190) The government has announced __________ rupee Answer: c)
award for states that would complete the household Sensex is a basket of 30 constituent stocks representing a
electrification early under the Saubhagaya scheme. sample of large, liquid and representative companies. A rise
a) 200 crore in Sensex means overall rise in prices of top 30 shares of
b) 50 crore group of companies registered with BSE.

193) The Cash Reserve Ratio (CRR) which is to be e) Savings bank accounts and current accounts
maintained with the Reserve Bank of India is maintained Answer: e)
in which of the following ways? Both savings bank accounts and current accounts are allowed
a) Minimum cash reserves to operate by cheques.
b) Gold 196) What is the new National Minimum Wage (NMW)
c) Approved Securities per month for a worker,recently revised by an expert
d) Both a) and b) committee appointed by Government of India?
e) All of the above a) Rs.8750 per month
Answer: a) b) Rs.9750 per month
Every commercial bank has to keep certain minimum cash c) Rs.7550 per month
reserves with RBI. This is known as the Cash Reserve Ratio d) Rs.8550 per month
(CRR). Apart from the CRR, banks are required to maintain e) None of these
liquid assets such as precious metals (gold) or other approved Answer: b)
securities, other than the cash. This is known as the Statutory An expert committee appointed by government suggested Rs.
Liquidity ration (SLR). 9,750 per month or Rs. 375 per day as National Minimum
194) In the capital Market, the term arbitrage is used Wage (NMW) for a worker. The Present NMW is Rs.
with reference to ______________ 4,576.National minimum wage gas been proposed at various
a) Purchase of securities to cover the sale regional level in the range of Rs.8,892 to Rs. 11,622 per
b) Sale of securities to reduce the loss on purchase month, with supplementary house rent allowance of Rs.
c) Simultaneous purchase and sale of securities to make 1,430 per month for urban workers.The recommendations
profits from price could form the basis for a national minimum wage covering
d) Variation in different markets all workers irrespective of skills, sectors, occupations and
e) None of the above rural-urban areas.According to Committee’s formula, a
Answer: c) family with 3.2 units of consumption requires food of
The simultaneous purchase and sale of an asset in order to Rs.2400, minimum 50 gm of protein and 30 gm of fat every
profit from a difference in the price. It is a trade that profits day.The Labour ministry has proposed a statutory minimal
by exploiting price differences of identical or similar wage which will be calculated by NMW calculator to address
financial instruments, on different markets or in different varying economic conditions at state and regional levels
forms. Arbitrage exists as a result of market inefficiencies; it through a Code on Wages Bill.
provides a mechanism to ensure prices do not deviate 197) Which of the following scheme is launched as a
substantially from fair value for long periods of time. pension scheme by Finance Minister during Union budget
195) In which of the following accounts is operation by 2019-20 for the benefit of workers in Unorganised Sector?
cheques permitted? a) PradhanMantriAdarsh Gram Yojana
a) Savings bank accounts and fixed deposit accounts b) PradhanMantriMatritvaVandanaYojana
b) Current accounts and fixed deposit accounts c) PradhanMantriShram Yogi MandhanYojana
c) Savings bank accounts and floating loan accounts d) PradhanMantriGraminAwaasYojana
d) Savings bank accounts and cash accounts e) None of these

Answer: c) 199) What is the new interest rate on Employees’
On 15th February 2019, Finance minister has implemented Provident Fund for 2018-19 recommended by Employees’
the PradhanMantriShram Yogi MandhanYojana which is Provident Fund Organisation (EPFO) ?
primarily a pension scheme for the labours, associated in the a) 8.65%
unorganized sector. It was announced in Budget 2019. Under b) 8.55%
this scheme, workers of unorganized sectors whose monthly c) 8.85%
income is less than Rs. 15,000 may avail the Rs. 3000 per d) 8.75%
month after 60 year of age The scheme will facilitate the e) None of these
benefits up to 10 crore workers which include lower class Answer: a)
workers, labor, plumber, mechanic, sweeper, construction Employees’ Provident Fund Organisation (EPFO) has
workers, etc. An amount of Rs. 500 crore has been allocated recommended to increase the interest rate on Employees’
for the scheme. The benefits of the scheme will be availed Provident Fund for 2018-19 to 8.65% from 8.55% benefitting
within 5 years. 6 crore EPFO subscribers.All members of the Central Board
198) Government of India, Himachal Pradesh of Trustees (CBT),EPFO of have agreed to the increase the
Government and World Bank had signed an agreement interest rate and the proposal would now go to the Finance
worth,how much million for supplying water to the Ministry for approval.The EPFO provided a five-year-low
citizens of Greater Shimla? rate of interest of 8.55% for FY18. The interest rate was
a) USD 20 Million 8.65% in FY17, 8.8% in FY16 and 8.75% interest in FY14
b) USD 40 Million and FY15. The rate of interest was 8.5% in FY13.
c) USD 50 Million 200) How much is the new limit decided by RBI for Bulk
d) USD 60 Million Deposits inorder to enhance operational freedom of
e) None of these Banks?
Answer: b) a) 2 Crore
A loan agreement of $40 million (4 crore INR) was signed b) 1 Crore
between the Government of India, Himachal Pradesh c) 50000
Government and World Bank, to help bring clean and reliable d) 1 Lakh
drinking water to the citizens of Greater Shimla area, who e) None of these
have been facing severe shortages of water and water-borne Answer: a)
epidemics in the last few years.Shimla Water Supply and Reserve Bank of India decided to treat deposits to over Rs.2
Sewage Service Delivery Reform Programmatic crore as ‘bulk’ as they doubled the limit for the same from
Development Policy Loan is expected to improve Water the earlier Rs.1crore. This move will enhance operational
Supply & Sanitation (WSS) services in and around freedom of Banks. RBI also proposed banks would maintain
Shimla.Loan agreement was signed by Mr. Sameer Kumar their bulk deposits interest rate cards in the core banking
Khare, Additional Secretary, Department of Economic system for supervisory review. National Federation of Urban
Affairs, Ministry of Finance, on behalf of the Government of Cooperative Banks and Credit Societies Limited (NAFCUB)
India and Mr.Junaid Kamal Ahmad, Country Director, World has suggested this proposal. The decision in proposal for
Bank India, on behalf of the World Bank.

setting up an Umbrella Organization (UO) for urban cooperative banks in pending with RBI.
201) What do you understand by, ‘Asset Reconstruction e) Rs. 200000

Companies look for business from banks’? Answer: b)
a) These companies buy the bad debts from banks at discount Under MUDRA Bank’s Shishu Scheme, maximum loan
b) They help banks in identifying the potential clients for amount that can be granted is Rs. 50000. The maximum loan
loans amount is Rs. 5 lakh under Kishor Scheme and Rs. 10 lakh
c) They help banks identify potential clients for infrastructure under Tarun Scheme.
lending by these companies 204) Under which of the following sections of the Banking
d) Both B and C Regulation Act,1949 does RBI issue guidelines on the
e) None of these maintenance of Statutory Liquidity Ratio (SLR)?
Answer: a) a) Section 24
Asset Reconstruction Companies (ARC), purchases the bad b) Section 42
loans or non-performing assets (NPA) issued by commercial c) Section 26
and other banks at discounted rates. d) Section 56
202) In the Union Budget, what does the term 'primary e) Both option a) and d)
deficit' mean? Answer: e)
a) Revenue Deficit — Interest Payment RBI regularly issues guidelines on maintenance of Statutory
b) Fiscal Deficit — Interest Payment Liquidity Ratio (SLR) under Section 24 and Section 56 of the
c) Revenue Expenditure — Revenue Receipts Banking Regulation Act, 1949 to all banks in India.
d) Total Expenditure — Total Borrowing 205) Narrow Money, a term in monetary aggregates, is
e) Budget deficit— Interest payment denoted by ____. A
Answer: b) a) M2 and M1
Primary deficit: It is the fiscal deficit less interest payments b) M4 and M3
made by the government on its earlier borrowings. c) M1 and M3
203) Maximum Loan amount under MUDRA Bank’s d) M3 and M1
Shishu Scheme is? e) M0 and M1
a) Rs. 25000 Answer: e)
b) Rs. 50000 M0 and M1, also called narrow money, normally include
c) Rs. 75000 coins and notes in circulation and other money equivalents
d) Rs. 100000 that are easily convertible into cash.

M2 includes M1 plus short-term time deposits in banks and 2019. Government announced fixed yearly income for small
24-hour money market funds. and marginal farmers under
M3 includes M2 plus longer-term time deposits and money PradhanmantriKisanSammanNidhiYojna. This scheme will
market funds with more than 24-hour maturity. The exact benefit about 12 crore farmers who have 2 Hectare land.
definitions of the three measures depend on the country. M4 Rupee 6000 per year direct cash transfer in their account.
includes M3 plus other deposits. The term broad money is Cash transfer will be given in three equal installments of Rs
used to describe M2, M3 or M4, depending on the local 2000 each. The benefit under this yojna will be given
practice. retrospectively from December 2018. Rs. 75000 crore
206) As per the National Sample Survey Office's report, allotted for this scheme. It is expected to double the farmers
What is the unemployment rate for the year 2017-18? income.
a) 6.3% 208) Which Country is to lend a loan of $1 billion to
b) 5.9% Beijing to fund a major highway project?
c) 5.8% a) Bangladesh
d) 6.1% b) India
e) 6.5% c) South Korea
Answer: d) d) China
As per the National Sample Survey Office's (NSSO's) e) Russia
periodic labor force survey (PLFS) India's unemployment Answer: d)
rate hit a 45 year high of 6.1% in 2017-18. It is the first China is to sign a $1 billion concessional loan agreement
comprehensive survey on employment conducted by a with Beijing. The agreement is to fund a major highway
government agency after demonetization. Unemployment is project linking Colombo to Kandy. The construction of the
higher in urban areas which is 7.8% as compared to 5.3% in first phase of the road has been delayed for more than two
rural areas of the country. The unemployment rate is at its years due to a lack of funding. Last year Sri Lanka has
highest level as in 1972-73. The rate of jobless rural males handed over a strategic port to a Chinese firm for a 99-year
rose to 17.4% from 5% and among rural jobless females, the lease.
rate became 13.6% from 4.8%. 209) Saudi Crown Prince, Mohammed bin Salman
207) How much will be allotted under the increased the quota for Indian Haj pilgrims from 1.75
PradhanmantriKisanSammanNidhiYojna as per the lakh to _______ lakh after PM NarendraModi’s request?
union Budget 2019? a) 3 Lakh
a) Rs. 55000 crore b) 2.5 Lakh
b) Rs. 75000 crore c) 2.75 Lakh
c) Rs. 30000 crore d) 2 Lakh
d) Rs. 85000 crore e) None of these
e) Rs.50000 crore Answer: d)
Answer: b) Saudi Crown Prince, Mohammed bin Salman also announced
The Union Minister PiyushGoyal announced various the increase in quota for Indian Haj pilgrims from 1.75 lakh
schemes in the Interim Union Budget 2019-20 on February 1, to 2 lakh at the request of PM Modi. 2,340 Muslim women

will go to Hajj this year, without mehram (companion) and 212) Under 'Non-Performing Assets (NPA) recognition
without the lottery system. This will be the third such process', an asset would be classified as ___________ if it
increase in the last 5 years. has remained in the substandard category for a period of
210) Which of the following banks are removed from the 12 months.
PCA (Prompt Corrective Action) framework recently? a) Non-Performing
a) Corporation Bank, Allahabad Bank and Dhanlaxmi Bank b) Restructured
b) Corporation Bank,Dhanlaxmi Bank and Yes Bank c) Doubtful
c) Allahabad Bank, Yes Bank and ICICI Bank d) Loss
d) HDFC Bank,Union Bank of India and Indian Bank. e) Active
Answer: a) A restructured account is one where the bank, grants to the
On 26th February 2019, the Board for Financial Supervision borrower concessions that the bank would not otherwise
(BFS) of the Reserve Bank of India has removed 2 public consider. It is a mechanism to nurture an otherwise viable
sector banks- Corporation Bank and Allahabad Bank and 1 unit, which has been adversely impacted, back to health.A
private sector bank – Dhanlaxmi Bank from PCA (Prompt substandard asset would be one, which has remained NPA for
Corrective Action) framework. According to BFS, Allahabad a period less than or equal to 12 months.An asset would be
Bank and Corporation Bank had received Rs 6,896 crore and classified as doubtful if it has remained in the substandard
Rs 9,086 crore respectively which led to increase in their category for a period of 12 months.
capital funds and also increased their loan loss provision. 213) The payments bank should have a leverage ratio of
According to RBI, Dhanlaxmi bank was found to be not not less than ___________.
breaching any of the risk threshold of the PCA Framework, a) 2%
hence was removed out of the PCA Framework. b) 3%
211) A 'Legal Entity Identifier' is a _____ character c) 4%
identifier that identifies distinct legal entities that engage d) 5%
in financial transactions. e) 6%
a) 20 Answer: b)
b) 10 A leverage ratio is any one of several financial measurements
c) 15 that look at how much capital comes in the form of debt
d) 7 (loans) or assesses the ability of a company to meet its
e) 5 financial obligations.The minimum paid-up equity capital for
Answer: a) payments banks shall be Rs. 100 crore.The payments bank
The Legal Entity Identifier (LEI) code is conceived as a key should have a leverage ratio of not less than 3 per cent, i.e.,
measure to improve the quality and accuracy of financial data its outside liabilities should not exceed 33.33 times its net
systems for better risk management post the Global Financial worth (paid-up capital and reserves).
Crisis.LEI is a 20-digit unique code to identify parties to 214) ________________ is not included under 'Weaker
financial transactions worldwide. Sections category' eligible for 'Priority sector loans' given
by the banks.

a) Persons with disabilities 217) The Asian Development Bank (ADB) and the
b) Minority Communities Government of India signed a $_____ Million Loan
c) Scheduled Casts and Scheduled Tribes Agreement today to operationalize two lines for the
d) Distressed persons other than farmers Mumbai Metro Rail System.
e) Other Backward Classes a) 900
Answer: e) b) 845
Other Backward Classes is not included under 'Weaker c) 926
Sections category' eligible for 'Priority sector loans' given by d) 876
the banks. e) 918
215) A crossed cheque is any cheque that is generally Answer: c)
crossed with ______ parallel line(s). The Asian Development Bank (ADB) and the Government of
a) One India signed a $926 Million Loan Agreement today to
b) Five operationalize two lines for the Mumbai Metro Rail System.
c) Seven The Project also marks ADB’s first co-financing with NDB,
d) Zero which will provide $260 million. ADB President-
e) Two TakehikoNakao Headquarters- Mandaluyong, Philippines.
Answer: e) 218) As per Moody’s report, Indian economy is expected
A crossed cheque is any cheque that is crossed with two to grow at ____________ in calendar year 2019 and 2020
parallel lines, either across the whole cheque or through the a) 7.8%
top left-hand corner of the cheque.This symbol means that b) 6.7%
the cheque can only be deposited directly into a bank account c) 8.1%
and cannot be immediately cashed by a bank or any other d) 7.3%
credit institution.If a cheque is crossed, there is no way for e) 7.0%
the payee to uncross the cheque. Answer: d)
216) Total gross GST revenue collected in the month of As per Moody’s report, Indian economy is expected to grow
February 2019 is Rs. ________ crores. at 7.3 per cent in calendar year 2019 and 2020. In 2018-19
a) 90,928 fiscal Indian economy is estimated to have grown 7%, lower
b) 75,937 than 7.2% in 2017-18
c) 86,610 219) SEBI has lifted the restriction on limit of investments
d) 97,247 by FPIs in corporate bonds of an entity. Earlier this limit
e) 1,00,273 was capped at __________ percent
Answer: d) a) 20%
Total gross GST revenue collected in the month of February b) 30%
2019 is Rs. 97,247 crore of which CGST is Rs. 17,626 crore, c) 10%
SGST is Rs. 24,192 crore, IGST is Rs. 46,953 crore& cess is d) 40%
Rs 8,476 crore. Revenue in February 2018 was Rs. 85,962 e) 25%
crore. Answer: a)

Securities and Exchange Board of India (SEBI) has lifted the d) 66 mm * 146 mm
restriction on FPI which stated that no FPI shall have an e) 66 mm * 135 mm
exposure of more than 20% of its corporate bond portfolio to Answer: e)
a single corporate. The dimension of the new 50-rupee note is 66 mm * 135 mm.
220) How many banks in India has been classified as The colour of the note is Fluorescent blue and motif is Hampi
Domestic Systemically Important Banks (D-SIBs) by with Chariot. Rupee Note Dimension 10-rupee note 63 mm *
RBI? 123 mm 100-rupee note 66 mm * 142 mm 500-rupee note 66
a) 4 mm * 150 mm 200-rupee note 66 mm * 146 mm
b) 1 223) Which among the following is authorized by RBI to
c) 2 store rupee notes and coins?
d) 3 a) Currency Bag
e) 5 b) Currency Block
Answer: d) c) Currency Chest
The Reserve Bank of India has released the list of Domestic d) Currency Reserve
Systemically Important Banks (D-SIBs). State Bank of India e) None of these
is in Bucket 3, while HDFC and ICICI Bank both are in Answer: c)
Bucket 1. Rest all buckets are empty. These three banks are Currency chests are branches of selected banks authorized by
in the D-SIBs list since Sep 04, 2017. No new bank has been the RBI to stock rupee notes and coins. The main function of
added after the revised list is released on March 14, 2019. currency chests is to facilitate note supply. The cash reserve
221) In National Financial Switch service, the limit per ratios of the commercial banks are also kept at currency
transaction is restricted to less than _________. chests. Currency chests are usually located at authorized
a) Rs. 20000 select branches of the scheduled bank.
b) Rs. 25000 224) If the credit balance in a savings account has not
c) Rs. 50000 been operated for ten years, the amount should be
d) Rs.10000 transferred to which fund?
e) Rs. 40000 a) Unpaid Contract Fund
Answer: c) b) Cash Reserve Fund
In National Financial Switch service, the limit per transaction c) Unclaimed Bank Deposit Fund
is restricted to less than Rs. 50000. National Financial Switch d) Inactive Deposit Fund
(NFS) is the largest interconnected network of automated e) Depositor Education and Awareness Fund
teller machines (ATMs) in India. It was taken over by NPCI Answer: e)
from Institute for Development and Research in Banking As per the Reserve Bank of India, the bank deposit which has
Technology (IDRBT) in 2009. not been claimed for 10 years or more would be transferred
222) What is the dimension of the new 50 rupee note? to Depositor Education and Awareness Fund Scheme.
a) 63 mm * 123 mm Reserve Bank of India established a Fund under the Section
b) 66 mm * 142 mm 26A of the Banking Regulation Act, 1949.The amounts to be
c) 66 mm * 150 mm

credited to the Fund by banks shall be deposited in the c) Atal Pension Yojana
specified account maintained with the RBI. d) Pradhan Mantri Garib Kalyan Yojana
225) To use the services of which of the following, you do e) Atal Mission for Rejuvenation and Urban Transformation
not need to have your KYC done with the services? Answer: b)
a) Amazon Pay The World Bank has approved Atal Bhujal Yojana (ABHY),
b) Mobikwik a Rs.6000 crore Central Sector Scheme of the Ministry of
c) ICICI salary account Water Resources, River Development and Ganga
d) Paytm e-wallet Rejuvenation. The scheme is to be implemented over a period
e) None of the above of five years from 2018-19 to 2022-23, with World Bank
Answer: e) assistance. The scheme proposal has already been
Know Your Customer commonly known as KYC, enables a recommended by the Expenditure Finance Committee and
bank/financial institution to validate the identity of its the Ministry will be seeking Cabinet approval for the project
servicing customers. In order to open a bank account, one shortly.
needs to submit Aadhaar/enrolment number and PAN as 228) According to SEBI, investors will be permitted to
‘proof of identity and proof of address’ For using the e-wallet purchase mutual funds worth up to Rs ______________
services like Amazon Pay & Mobikwik, one needs to have through digital wallets.
their KYC done by providing any one of the identity proof as a) Rs 1,50,000
applicable b) Rs 1,00,000
226) Which organization has launched its $1 billion c) Rs 50,000
masala bond programme in the US and Europe recently? d) Rs 5,000
a) International Centre for Settlement of Investment Disputes e) Rs 25,000
b) International Bank for Reconstruction and Development Answer: c)
c) International Finance Corporation Investors will be permitted to purchase mutual funds worth
d) Multilateral Investment Guarantee Agency up to Rs 50,000 through digital wallets, the market regulator,
e) International Development Association Sebi said in a release. "Investments up to Rs 50,000 per
Answer: c) mutual fund per financial year can be made using e-wallets,"
IFC or International Finance Corporation, the World Bank’s the regulator said while redemptions of such investments can
lending arm, has launched its $1 billion masala bond be made only to the bank account of a unit holder.
programme in the US and Europe. These bonds are aimed at 229) The Union Government, Rajasthan and the World
funding the rapidly expanding investment activities of IFC in Bank signed a _______________________ million
India. Development Policy Loan (DPL) to support Rajasthan in
227) The World Bank has approved Rs.6000 crore to improving the performance of its Electricity Distribution
Central Sector Scheme of the Ministry of Water Sector under the State’s ‘24x7 Power for All’ program.
Resources, River Development and Ganga Rejuvenation a) USD 1200 million
for which scheme? b) USD 725 million
a) Pradhan Mantri Fasal Bima Yojana c) USD 500 million
b) Atal Bhujal Yojana d) USD 250 million

e) USD 400 million a) Revenue deficit
Answer: d) b) Primary deficit
The Union Government, Rajasthan and the World Bank c) Capital Account deficit
signed a USD 250 million Development Policy Loan (DPL) d) Budget deficit
to support Rajasthan in improving the performance of its e) Current Account Deficit
Electricity Distribution Sector under the State’s ‘24x7 Power Answer: b)
for All’ program. Primary deficit refers to difference between fiscal deficit of
230) The government of India has doubled the monetary the current year and interest payments on the previous
limit to _________________ rupees for filing loan borrowings. Primary Deficit = Fiscal Deficit – Interest
recovery application in the Debt Recovery Tribunals Payments.
(DRT) by banks and financial institutions.
233) Which institution presents cross country data on
a) 20 lakh rupees
various aspects of financial inclusion known as Global
b) 30 lakh rupees
Findex data?
c) 10 lakh rupees
a) IMF
d) 60 lakh rupees
b) World Bank
e) 50 lakh rupees
c) European Central Bank
Answer: a)
d) Boston Consulting Group (BCG)
The government of India has doubled the monetary limit to
e) Standard and Poor’s (S&P)
20 lakh rupees for filing loan recovery application in the Debt
Answer: b)
Recovery Tribunals (DRT) by banks and financial
The Global Findex database is the world’s most
institutions. As per the Finance Ministry, the move is aimed
comprehensive data set on how adults save, borrow, make
at helping reduce pendency of cases in DRTs.
payments, and manage risks. The data is presented by
231) “ELSS” is often called as the best tax-saving option
WORLD BANK. The Global Findex database has become a
available under Section 80C. ELSS stands for which of
mainstay of global efforts to promote financial inclusion. In
the following?
addition to being widely cited by scholars and development
a) Equity Linked Saving schemes
practitioners, Global Findex data are used to track progress
b) Economic Listed Saving Schemes
toward the World Bank goal of Universal Financial Access
c) Exchange Liberalised Saving System
by 2020 and the United Nations Sustainable Development
d) Engel’s Law Saving Scheme
Goals.
e) Equity Linked Service Scheme
234) The Government has decided to make the PMJDY
Answer: a)
an open-ended scheme and added more incentives to
ELSS (Equity Linked Saving schemes) is one of the best tax-
encourage people to open bank accounts. The Finance
saving options as it has the shortest lock-in period among the
Minister Arun Jaitley stated that the overdraft facility
tax-saving options available under Section 80C.
has been doubled from Rs. 5,000 to __________________
232) _____ refers to difference between fiscal deficit of the
under the Yojana.
current year and interest payments on the previous
a) Rs. 10,000
borrowings.

b) Rs. 15,000 acquired 51 per cent of the total paid-up equity share capital
c) Rs. 7,000 of the bank.
d) Rs. 20,000 237) What percentage of stake has been acquired by
e) Rs. 8,000 Asian Development Bank in micro-financier company
Answer: a) ‘Annapurna Finance’ recently?
The Government has decided to make the Pradhan Mantri Jan a) 24%
Dhan Yojana (PMJDY) an open-ended scheme and added b) 14%
more incentives to encourage people to open bank accounts. c) 49%
The Finance Minister Arun Jaitley stated that the overdraft d) 76%
facility has been doubled from Rs. 5,000 to Rs. 10,000 under e) 51%
the Yojana. Answer: b)
235) Which organisation presents supply-side dataset on In February, 2019, Asian Development Bank (ADB) bought
financial services aimed to measure and monitor financial 14% stake in micro-financier Annapurna Finance for Rs. 137
inclusion? crores. ADB Bank bought this stake with a motive of
a) International Monetary Fund attracting long -term funds from global lenders and investors.
b) Reserve Bank of India 238) Which state government has launched ‘Pravasi
c) World Bank Dividend Pension Scheme’ to provide regular pension to
d) Asian Development Bank non-resident?
e) Swiss National Bank a) Manipur
Answer: a) b) Uttar Pradesh
IMF’s Financial Access Survey (FAS) provides data on c) Maharashtra
access to and use of basic financial services by individuals d) Gujarat
and firms. e) Kerala
236) IDBI Bank has been categorized as ‘Private Sector Answer: e)
Lender’ by RBI. What percentage of stake has been Kerala state government has launched a ‘Pravasi Dividend
acquired by Life Insurance Corporation of India (LIC) in Pension Scheme’ to provide regular pension to non-resident
the bank recently? Keralites on a one-time payment of Rs.5 Lakhs.
a) 49% 239) What is the limit of Ways and Means Advances
b) 26% (WMA) set by Reserve Bank of India for the period of
c) 65% “April 2019 - September 2019”?
d) 76% a) Rs. 70,000 Crores
e) 51% b) Rs. 72,000 Crores
Answer: e) c) Rs. 73,000 Crores
In March 2019, The Reserve Bank of India categorized IDBI d) Rs. 74,000 Crores
Bank as a Private Sector Bank with effect from January 21, e) Rs. 75,000 Crores
2019 following Life Insurance Corporation of India (LIC) has Answer: e)

The Reserve Bank of India, in consultation with the banks to clean up their balance sheets (by removing the
Government of India, has decided that the limits for Ways NPAs). RBI has got the power to regulate the ARCs.
and Means Advances (WMA) for the first half of the 242) Narrow Money is the term in monetary aggregates,
financial year 2019-20 (April 2019 to September 2019) to be which is represented by?
Rs 75000 crores. The Reserve Bank may trigger fresh a) M1
floatation of market loans when the Government of India b) M2
utilises 75% of the WMA limit. c) M3
240) Assam has announced which scheme to provide gold d) M4
to the brides of Economically Weaker Section of the e) M5
society at the time of marriage? Answer: a)
a) Mukhyamantri Kanyadaan Scheme Different measures of money supply. Not all of them are
b) Ladli Laxmi Yojana widely used and the exact classifications depend on the
c) Arundhati Scheme country. M0 and M1, also called narrow money, normally
d) Janani Suraksha Yojana (JSY) include coins and notes in circulation and other money
e) Kalyani Yojana equivalents that are easily convertible into cash. M2 includes
Answer: c) M1 plus short-term time deposits in banks and 24-hour
Under ‘Arundhati” scheme, the government of Assam will money market funds. M3 includes M2 plus longer-term time
provide 1 Tola Gold to brides belonging to all such deposits and money market funds with more than 24-hour
communities of Assam where it is customary to provide gold maturity. The exact definitions of the three measures depend
at the time of the wedding. The government has set aside Rs on the country. M4 includes M3 plus other deposits. The
300 crores for the implementation of the Arundhati Scheme. term broad money is used to describe M2, M3 or M4,
The scheme is limited for the families whose annual income depending on the local practice.
is less than Rs 5 lakh. 243) Which among the following commodity exchange has
241) In India, an Asset Reconstruction Company is launched India’s first commodity options in gold?
regulated by? a) National Spot Exchange Limited (NSEL)
a) MUDRA b) Indian Commodity Exchange Limited (ICEX)
b) SEBI c) National Commodity & Derivatives Exchange Limited
c) NABARD (NCDEX)
d) EXIM d) Multi-Commodity Exchange of India Ltd (MCX)
e) RBI e) Securities and Exchange Board of India (SEBI)
Answer: e) Answer: d)
The leading problem in the country right now is alarming The Multi-Commodity Exchange of India Ltd (MCX)
volume of Non-Performing Assets with the banking system. launched India’s first commodity options in gold, giving
Several attempts were made to tackle NPAs. A serious such stakeholders a new set of financial instruments to hedge their
step was the creation of dedicated institutions called Asset price risks. Launched by Union Finance Minister ArunJaitley
Reconstruction Companies or ARCs that purchases bad in New Delhi on the auspicious day of Dhanteras, the gold
assets or NPAs from banks at a negotiable price and helps options received an encouraging response on Day 1.

244) What should be the minimum processing capacity of across all platforms, namely, Paytm, Google Pay, PhonePe,
the Currency Chests according to the latest notification of Trucaller Pay among others. For Kotak Mahindra Bank’s
the RBI? account holders, the first 30 peer-to-peer UPI fund transfer
a) 5,50,000 pieces banknotes/day would be free of cost. Once a person exceeds 30 UPI
b) 4,40,000 pieces banknotes/day transactions, he will be charged Rs. 2.50 per transaction for
c) 2,20,000 pieces banknotes/day of Rs. 1000 or less. For transfers exceeding Rs. 1000, the
d) 6,60,000 pieces banknotes/day bank will charge Rs. 5 plus 18% GST. No additional charges
e) 7,70,000 pieces banknotes/day have been imposed upon reception of money via UPI for
Answer: d) merchant transactions or bill payments.
Processing capacity of 6,60,000 pieces of banknotes per day. 247) What is the limit of Ways and Means Advances
For those situated in the hilly/ inaccessible places, capacity of (WMA) set up by Reserve Bank of India (RBI) for the
2,10,000 pieces of banknotes per day first half of the financial year 2019-20?
245) The branches of selected banks authorized by the a) Rs.90000 crore
RBI to stock rupee notes and coins for the circulation in b) Rs.75000 crore
the economy is known as________ c) Rs.25000 crore
a) Blue Chip d) Rs.50000 crore
b) Front Office e) None of these
c) Currency Chest Answer: b)
d) Holding Company The Reserve Bank of India has set the limits for Ways and
e) None of these Means Advances (WMA) to Rs. 75000 crore for the first half
Answer: c) of the financial year 2019-20 (April 2019 to September
Currency Chest is a bank branch authorised by RBI to hold 2019). As and when the government of India utilises 75% of
the money for distribution of money to other bank branches. the WMA limit, the central bank would activate fresh
It acts as an extended arm of RBI for the circulation of floatation of market loans. The rate of interest issued on the
currency in the economy. Ways and Means Advances (WMA) will be Repo Rate while
246) Which bank becomes the first lender to impose the overdraft will exceed the Repo Rate by flat 2%. The
charges On UPI transactions, namely, Paytm, Google WMA needs to be vacated after 90 days.
Pay, PhonePe? 248) Under which project, Indian Navy has initiated the
a) ICICI Bank process to build six lethal submarines worth over
b) City Union Bank Rs.50000 crore?
c) Kotak Mahindra Bank a) Project – 75I
d) Lakshmi Vilas Bank b) Project – 50I
e) None of these c) Project – 06I
Answer: c) d) Project – 70I
Starting from 1st May, 2019, India’s private sector bank, e) None of these
Kotak Mahindra Bank would become the first lender to levy Answer: a)
charges on peer-to-peer (P2P) UPI transactions available

Under the ambitious Project75-India, the Indian Navy desires e) Rs. 5000 per month
to build 6 standard diesel-electric submarines. These Answer: d)
submarines would be 50% massive in size than the Scorpene Each subscriber under APY shall receive a Central
class submarines which are under-construction at the Government guaranteed minimum pension of Rs. 1000 per
Mazagon Dockyards Limited. This would incur an overall month or Rs. 2000 per month or Rs. 3000 per month or Rs.
cost of Rs. 50,000 crore. Since the maritime force needs the 4000 per month or Rs. 5000 per month, after the age of 60
boats to have minimum 12 Land Attack Cruise Missiles years until death.
(LACM) and Anti-Ship cruise missiles (ASCM), it wants the 252) SCSS offers regular income, highest safety and tax
diesel-electric submarines to be furnished with heavy-duty saving, making it a popular product for those over _____
firepower. years of age.
249) How much dividend will be paid by RBI to the a) 64 years
government this year? b) 62 years
a) Rs 28000 crore c) 60 years
b) Rs 25000 crore d) 65 years
c) Rs 27000 crore e) 80 years
d) Rs 31000 crore Answer: c)
e) Rs 45000 crore The Senior Citizens Savings Scheme (SCSS) offers regular
Answer: a) income, highest safety and tax saving, making it a popular
RBI will pay an interim dividend of Rs 28000 crore to the product for those over 60 years of age.
government, a move that will help the Centre keep fiscal 253) Credit rating is _______
deficit in check. a) is used to rate the borrowers while giving advances
250) Recently, the central government infused how much b) is used to work out performance of the employees
amount into 12 Public Sector Banks? c) is used to calculate the number of excellent audit rated
a) Rs 47521 crore branches
b) Rs 48239 crore d) is not used in any bank
c) Rs 45125 crore e) is necessary before giving promotion to employees
d) Rs 51254 crore Answer: a)
e) Rs 58254 crore Credit rating is an analysis of the credit risks associated with
Answer: b) a financial instrument or a financial entity. An assessment of
The Central Government approved recapitalisation of 12 the creditworthiness of a borrower with respect to a particular
public sector banks with an infusion of Rs 48,239 crore. debt or financial obligation.
251) Each subscriber under APY shall receive a Central 254) Which of the following is defined as the difference
Government guaranteed minimum pension of- between current assets and current liabilities?
a) Rs. 2000 per month a) Venture Capital
b) Rs. 3000 per month b) Working Capital
c) Rs. 4000 per month c) Equitable Mortgage
d) Rs. 1000 per month d) Loss Assets

e) Profit and Loss Account The fund would be used for 158 minor irrigation projects and
Answer: b) 23 flood protection projects.
The capital of a business (working capital) which is used in 258) Which of the following bank has proposed to sell its
its day-to-day trading operations, calculated as the current stake in PNB Metlife India to private equity player Oman
assets minus the current liabilities. India Joint Investment Fund II for Rs 185 crore?
255) Which of the following is an investment strategy in a) Bank of Baroda
which a fund invests in other types of funds? b) Bank of India
a) Bond c) Corporation Bank
b) Securities d) Jammu & Kashmir Bank
c) Stock e) ICICI Bank
d) Funds of Fund Answer: d)
e) None of the given options is true Jammu and Kashmir Bank has proposed to sell its stake in
Answer: d) PNB Metlife India to private equity player Oman India Joint
Funds of Fund is an investment strategy in which a fund Investment Fund II for Rs185 crore.
invests in other types of funds. 259) Which Mutual Funds company had surpassed ICICI
256) The GST Council allowed the filing of GST returns Prudential MF to gain top position?
with an annual turnover of up to Rs. 5 crore _____. a) Kotak Mahindra Mutual Funds
a) Yearly b) Birla Sun Life Mutual Funds
b) Half- Yearly c) HDFC Mutual Funds
c) Quarterly d) IndiaBulls Mutual Funds
d) Monthly e) None of the above
e) None of the above Answer: c)
Answer: c) HDFC Mutual Fund has surpassed ICICI Prudential MF to
The GST Council allowed the filing of GST returns with an gain top position. According to AMFI data, HDFC MF has
annual turnover of up to Rs. 5 crore is Quarterly. assets worth Rs 3.35 lakh crore while ICICI Prudential MF
257) Which of the following financial institution has manages only Rs 3.08 lakh crore. A mutual fund is a
sanctioned Rs 335 crore under the Rural Infrastructure professionally managed investment pool from various
Development Fund (RIDF) to West Bengal? investors that is used to buy securities.
a) National Housing Bank 260) Which of the following bank has designed and
b) Unit Trust of India developed PaiSA portal for quicker processing of loans
c) EXIM Bank under the DeendayalAntyodayaYojana?
d) NABARD a) Punjab National Bank
e) General Insurance Corporation (GIC) b) Vijaya Bank
Answer: a) c) Dena Bank
The National Bank for Agriculture and Rural Development d) Allahabad Bank
(NABARD) has sanctioned Rs 335 crore under the Rural e) None of these
Infrastructure Development Fund (RIDF) to West Bengal. Answer: d)

The Union Ministry of Housing and Urban Affairs has An ETF (Exchange Traded Fund) is a marketable security
launched the ‘PAiSA’ - Portal for Affordable Credit and that tracks an index, a commodity, bonds, or a basket of
Interest Subvention Access, a centralised electronic platform assets like an index fund. Unlike mutual funds, an ETF trades
for quicker processing of loans under the like a common stock on a stock exchange.
DeendayalAntyodayaYojana - National Urban Livelihoods 263) We often read about EBITDA margin of companies.
Mission (DAY-NULM). The web platform was designed and What does the letter ‘E’ denote in the term EBITDA?
developed by Allahabad Bank. a) Earnings
b) Estimates
261) The credit rating agencies (CRAs) operating in India c) Exchange
is regulated by which of the following institutions? d) Expansion
a) RBI e) Establishment
b) SEBI Answer: a)
c) IRDAI The EBITDA margin measures a company's earnings before
d) NABARD tax, depreciation and amortization as a percentage of the
e) SIDBI company's total revenue. Because EBITDA is calculated
Answer: b) before any interest, taxes, depreciation and amortization, the
A credit rating agency (CRA, also called a ratings service) is EBITDA margin measures how much cash profit a company
a company that assigns credit ratings, which rate a debtor's made in a given year.Fullform of EBITDA is Earnings before
ability to pay back debt by making timely interest payments interest, tax, depreciation and amortization .
and the likelihood of default. An agency may rate the 264) What does the letter ‘T’ denote in the term TReDS
creditworthiness of issuers of debt obligations, of debt as used in banking/finance?
instruments,and in some cases, of the servicers of the a) Transaction
underlying debt,but not of individual consumers.The debt b) Transfer
instruments rated by CRAs include government bonds, c) Taxation
corporate bonds, CDs, municipal bonds, preferred stock, and d) Termination
collateralized securities, such as mortgage-backed securities e) Trade
and collateralized debt obligations. The credit rating agencies Answer: e)
(CRAs) operating in India are regulated by SEBI. A number of private sector companies and a dozen state-run
262) A fund that tracks an index but can be traded like a firms and public sector banks have registered themselves on
stock is known as _______ the Trade Receivables Electronic Discounting System
a) Exchange Traded Funds (ETF) (TReDS) platform, paving way for faster payments to micro,
b) Mutual Funds small and medium enterprises (MSMEs).TReDS is an online
c) Energy Funds mechanism for facilitating the financing of trade receivables
d) Investment Fund of MSMEs through multiple financiers. It also enables
e) None of these discounting of invoices of MSME sellers raised against large
Answer: a) corporate, allowing them to reduce working capital needs.

265) “AePS” is a bank-led model for transactions at The Navy finalized a Rs.700 crore contract with Bharat
micro-ATMs. Here, A stands for ___________ Electronics Limited for establishing an upgraded Naval
a) Actual Airfield Integrated Security System. It will strengthen the
b) Arbitrary perimeter security of its air stations. Its implementation
c) Approved would be completed in 2020.
d) Aadhaar 268) Recently, the government has proposed to launch
e) Association 'PradhanMantriShram-Yogi Maandhan' for the
Answer: d) unorganised workers with monthly income up to
Aadhaar Enabled Payment System (AEPS) is a type of _________.
payment system which allows Aadhaar card holders to a) Rs. 15000
seamlessly make financial transactions through Aadhaar- b) Rs. 20000
based authentication. Objective: To empower a bank c) Rs. 10000
customer to use Aadhaar as his/her identity to access his/her d) Rs. 30000
respective Aadhaar enabled bank account and perform basic e) Rs. 25000
banking transactions. Answer: a)
266) ‘KisanSuvidha loan’ was launched by which among Government has proposed to launch 'PradhanMantriShram-
the following small finance banks? Yogi Maandhan' for the unorganised sector workers with
a) ESAF Small Finance Bank monthly income up to Rs. 15000. The scheme will provide an
b) Ujjivan Small Finance Bank assured monthly pension of Rs. 3000 from the age of 60
c) Jana Small Finance Bank years. The project outlay of the scheme is Rs.500 Crore.
d) Equitas Small Finance Bank 269) The Insolvency and Bankruptcy Code has helped the
e) AU Small Finance Bank Public Sector Banks recover over _________ crore in the
Answer: b) 3 quarters of the current fiscal.
Ujjivan SFB announced the launch of KisanSuvidha loan to a) Rs. 50000 Crore
offer collateral-free loans for both agriculture &allied b) Rs. 25000 Crore
activities to small & marginal farmers. The product provides c) Rs. 10000 Crore
hassle-free loans to individuals with the amount ranging from d) Rs.75000 Crore
Rs. 60000 – Rs. 2 Lakh. e) Rs. 1 Lakh
267) Recently, The Navy has finalized Rs.700 Answer: e)
Crorecontract with _________ for establishing an FM PiyushGoyal has exhorted state-run banks to step up
upgraded Naval Airfield Integrated Security System. lending to micro, small & medium enterprises, agriculture
a) Bharat Heavy Electricals Limited and housing sectors. The Insolvency and Bankruptcy Code
b) Bharat Electronics Limited has helped the PSBs recover over Rs.1 Lakh Cr in the 3
c) Reliance Industries quarters of the current fiscal.
d) Hindustan Aeronautics Limited 270) RBI recently mandated banks to treat
e) Bharat Dynamics Limited ______________ and more as bulk deposits.
Answer: b) a) Rs. 2 crore

b) Rs. 1 crore It helps alleviate the liquidity crunch that the sector is facing
c) Rs. 1.5 crore following series of defaults by group companies of IL&FS
d) Rs. 2.5 crore Ltd.
e) Rs. 3 crore 273) Under the Credit Risk Guarantee Fund Scheme,
Answer: a) Individual borrowers can get guarantee cover for housing
RBI doubled the limit for banks to consider Rs. 2 crore and loans up to __________.
more as bulk deposits from the earlier Rs. 1 crore with an aim a) Rs. 2 Lakh
to enhance operational freedom of banks. Banks generally b) Rs. Lakh
offer different rates of interest only on bulk deposits of Rs. 1 c) Rs. 10 Lakh
crore and more. d) Rs. 3 Lakh
271) Which among the following has become the first e) Rs. 1 Lakh
small finance bank to introduce personal loan scheme for Answer: b)
salaried employees? Credit Risk Guarantee Fund Scheme for Low Income
a) Ujjivan Small Finance Bank Housing (CRGFS) was formulated by the Ministry of
b) Jana Small Finance Bank Housing and Urban Poverty Alleviation. The objective of the
c) Equitas Small Finance Bank scheme is to provide credit guarantee support to Collateral
d) Fincare Small Finance Bank free/third-party guarantee free housing loans up to Rs.5 lakhs
e) None of the above extended by eligible lending institutions for Low Income
Answer: a) Housing in urban areas. National Housing Board has been
Ujjivan Small Finance Bank, a wholly owned subsidiary of mandated to manage the Fund Trust under the scheme.
Ujjivan Financial Services Limited, launched personal loan 274) NBFC- Infrastructure Finance company should have
facility for salaried professionals making it the first small a minimum Capital to Risk (Weighted) Assets Ratio of
finance bank in India to offer this scheme. The personal loan _________.
will be available for salaried professionals who are earning a a) 19%
monthly salary above Rs 15, 000. Individuals can avail loans b) 15%
starting from Rs 50,000 up to Rs 15 lakhs. c) 18%
272) What is the present refinance limit for housing d) 22%
finance companies? e) 20%
a) Rs. 30000 Crore Answer: b)
b) Rs. 24000 Crore Infrastructure Finance Company is a non-banking finance
c) Rs. 36000 Crore company which deploys at least 75% of its total assets in
d) Rs. 28000 Crore infrastructure loans.It should have a minimum Net Owned
e) Rs. 32000 Crore Funds of Rs. 300 crore and a Capital to Risk (Weighted)
Answer: a) Assets Ratio (CRAR) of 15%.NBFCs lend and make
The National Housing Bank (NHB) has set the refinance investments and hence their activities are like banks. But they
limit to Rs 30,000 crore for housing finance companies for cannot accept demand deposits, they do not form part of the
2018-19 in view of the current liquidity position of the sector.

payment and settlement system and cannot issue cheques India has signed a $950 million contract with Russiafor 2
drawn on itself. upgraded Krivak III-class stealthfrigates. They are built by
275) India has extended Line of Credit (LoC) of $200 Yantar Shipyard of Russia and will be powered by Ukrainian
million to which country through Exim Bank for gasturbine engines. They are expected to be delivered by the
infrastructure and housing projects. end of 2022.
a) Nepal 278) Swift India has partnered with fin-tech company
b) Afghanistan ____________ to create blockchain platform to prevent
c) Uzbekistan frauds and to ensure safety of transactions.
d) Jordan a) Incred
e) Egypt b) CCAvenue
Answer: c) c) PineLabs
India has extended Line of Credit (LoC) $200 million to d) Aye Finance
Uzbekistan through Exim Bank which entered into an e) MonetaGo
agreement with Uzbekistan to facilitate credit line to finance Answer: e)
housing and social infrastructure projects. The banking sector is set to create a blockchain platform with
276) IIFL Home Finance signed anMoU with which state SWIFT India to prevent frauds and ensure transparency and
government for building houses under security of real-time transactions. SWIFT India has partnered
PradhanMantriAwasYojana. with fin-tech company MonetaGo for a pilot project.
a) Uttar Pradesh 279) Reserve Bank of India disbursed $ ________ million
b) Maharashtra loan amounts to Sri Lanka to boost its reserves.
c) Gujarat a) 400
d) Telangana b) 200
e) Tamil Nadu c) 250
Answer: b) d) 300
IIFL Home Finance signed a Memorandum of Understanding e) 100
(MoU) with the Maharashtra government for capacity Answer: a)
building for affordable housing through credit-linked subsidy Reserve Bank of India (RBI) disbursed $400 million to the
scheme (CLSS) under PradhanMantriAwasYojana (PMAY). Central Bank of Sri Lanka (CBSL) under the SAARC swap
IIFL Chairman- Nirmal Jain facility. Sri Lanka's reserves dipped from $7991 million to
277) India has signed $950 million contract with ________ $6985 million due to the political crisis.
to buy two stealth frigates. 280) Recently, SEBI withdrew _________ percentage
a) France limit on investments by Foreign Portfolio Investors in
b) Russia corporate bonds of an entity.
c) Argentina a) 15%
d) USA b) 10%
e) UAE c) 20%
Answer: b) d) 25%

e) 12% face value. Treasury bills are presently issued in three
Answer: c) maturities, 91 day / 182 day / 364 day.
Securities and Exchange Board of India (SEBI) withdrew the 283) Collateralized Borrowings & Lending Obligation
20% limit on investments by Foreign Portfolio Investors in (CBLO) is a type of money market instrument operated
corporate bonds of an entity. The regulator said the restriction by which of the following?
is being withdrawn in accordance with a circular issued by a) RBI
the Reserve Bank of India. b) NPCI
281) A Saving account or Current account is classified as c) CCIL
‘Inoperative’ or ‘Dormant’ if there are no transactions in d) INFINET
the account for over a period of ___ years. e) SEBI
a) 9 months Answer: c)
b) 1 year The Collateralized Borrowing & Lending Obligation (CBLO)
c) 1.5 years market is a money market segment operated by the Clearing
d) 2 years Corporation of India Ltd. (CCIL)
e) 2.5 years 284) Treasury bills are sold in India which of the
Answer: d) following –
RBI has stipulated that a saving/current account will be a) Government of India
classified as an inoperative/dormant if there is no operation in b) Commercial Banks
the account for over a period of two years. Interest credited c) Reserve Bank of India
by the bank on the balance in the account and any charges d) The Securities and Exchange Board of India
debited by the bank is not considered as transaction for this e) Both a) and c)
purpose. Answer: c)
282) Which type of money market instrument is a short Treasury bills are issued by Government of India and sold by
term debt instrument issued by Government of India and Reserve Bank of India to banks.
are presently issued in three tenors? 285) In 2010, Government of India, in consultation with
a) Commercial Paper RBI introduced a new short term instrument to meet the
b) Call Money temporary mismatch in cash flow of the Government of
c) Notice Money India. The name of this money market instrument is ___
d) Treasury Bills a) Cash Management Bills (CMB)
e) None of these b) Bankers acceptance
Answer: d) c) Municipal notes
Treasury Bills are short term (up to one year) borrowing d) Federal funds
instruments of the Government of India which enable e) None of the above
investors to park their short term surplus funds while Answer: a)
reducing their market risk. They are auctioned by Reserve In 2010, Government of India, in consultation with RBI
Bank of India at regular intervals and issued at a discount to introduced a new short term instrument to meet the

temporary mismatch in cash flow of the Government of India e) 7.6 percent
called Cash Management Bills (CMB). Answer: a)
286) The Reserve Bank sets the average base rates of The Asian Development Bank downgraded economic growth
NBFC-MFI. It is; forecasts for India and Southeast Asia for 2019 as global
a) 8.15% risks from trade tensions to Brexit mount. Gross domestic
b) 9.21% product in India will probably increase 7.2 percent this year,
c) 8.81% down from a December forecast of 7.6 percent, according to
d) 9.52% the ADB’s latest Asian Development Outlook report.
e) 7.96% 289) Direct tax collections have fallen short by ________-
Answer: b) thereby failing to meet the revised target of Rs 12 lakh
The Reserve Bank set the average base rate to be charged crore for 2018-19.
from borrowers by non-banking financial companies a) Rs 60,000 crore
(NBFCs) and micro-finance institutions (MFIs) at 9.21% for b) Rs 40,000 crore
the first quarter of the next fiscal (April-June). The regulator c) Rs 70,000 crore
in February 2014 had issued directions to NBFC-MFIs d) Rs 50,000 crore
regarding pricing of credit. e) Rs 55,000 crore
287) The Reserve Bank of India, RBI will inject long-term Answer: d)
liquidity worth ___________ US Dollars into the banking Direct tax collections have fallen short by Rs 50,000 crore
system. thereby failing to meet the revised target of Rs 12 lakh crore
a) 1 billion for 2018-19 fiscal on account of poor personal income tax
b) 3 billion collections. The target of personal income tax of Rs 5.29 lakh
c) 7 billion crore was not met by almost the same shortfall amount of Rs
d) 5 billion 50,000 crore, which dragged down the direct tax collections
e) 9 billion for the fiscal 2018-19.
Answer: d) 290) World Bank to provide ____________ for the
The Reserve Bank of India, RBI said it will inject long-term National Rural Economic Transformation Project
liquidity worth 5 billion US Dollars into the banking system (NRETP) to boost Rural Incomes across 13 States in
through a dollar-rupee buy-sell swap for a tenure of three India.
years on April 23. The RBI statement stated that the move a) 200 Million dollar
intends to meet the durable liquidity needs of the system. b) 150 Million dollar
288) The Asian Development Bank downgraded economic c) 250 Million dollar
growth forecasts to_____________ from 7.6 percent for d) 300 Million dollar
India. e) 100 Million dollar
a) 7.2 percent Answer: c)
b) 7.4 percent World Bank to provide 250 Million dollar for the National
c) 7.0 percent Rural Economic Transformation Project (NRETP) to boost
d) 7.5 percent Rural Incomes across 13 States in India.

291) Which multilateral financial institution has recently as disbursed in a matter of 90 seconds. The approval time for
approved $400 million loan for water supply project in the loan would be 30 seconds based on an innovative risk
state of Andhra Pradesh? scoring model called ‘Mobiscore’. The minimum amount of
a) Asian Development Bank loans that can be approved is for Rs. 5000 and the users will
b) World Bank have the option to transfer the amount in their bank accounts.
c) International Monetary Fund 294) Reserve Bank initiated steps to set up a digital Public
d) Asian Infrastructure Investment Bank Credit Registry (PCR). For developing the registry, the
e) None of these RBI has invited expression of interest (EOI) from
Answer: d) companies with a turnover of over __________ in the last
Asian Infrastructure Investment Bank (AIIB- headquarter- three years.
Beijing, China) had approved a $400 million loan for a water a) Rs. 10 crores
sanitation project in Andhra Pradesh. India is the second b) Rs. 50 crores
largest shareholder of Asian Infrastructure Development c) Rs. 100 crores
Bank after China. d) Rs. 500 crores
292) What amount Andhra Pradesh state government has e) Rs. 25 crores
announced to provide to unemployed youth under Answer: c)
‘Mukhyamantri Yuva Nestam’ scheme? To capture details of all borrowers, willful defaulters and also
a) Rs. 1500 the pending legal suits, RBI has initiated steps to set up a
b) Rs. 1000 wide-based digital Public Credit Registry (PCR). For
c) Rs. 1200 developing the registry, the RBI has invited expression of
d) Rs. 1800 interest (EOI) from companies with a turnover of over Rs.
e) Rs. 2400 100 crores in the last three years.
Answer: b) 295) How much amount has been announced for
Andhra Pradesh government has launched unemployment Rashtriya Gokul Mission for the current year?
allowance scheme “Mukhyamantri Yuva Nestam”. The a) Rs.1250 crore
allowance amount would be of Rs. 1000 per month. b) Rs.100 crore
293) Which company has launched an instant loan c) Rs.500 crore
approval and disbursal product called ‘Boost’? d) Rs.750 crore
a) PhonePe e) Rs.1000 crore
b) FreeCharge Answer: d)
c) Paytm Allocation of Rs.750 crore for Rashtriya Gokul Mission has
d) Mobikwik been announced for the current year itself. Setting up of
e) Amazon Pay "Rashtriya Kamdhenu Aayog" to upscale sustainable genetic
Answer: d) upgradation of cow resources and to enhance production and
Online payment company MobiKwik has launched an instant productivity of cows has also been announced. The Aayog
loan approval and disbursal product called ‘Boost’. As per will also look after effective implementation of laws and
the offer, loans of upto Rs 60,000 can be sanctioned as well welfare schemes for cow.

296) What is the authorized capital of National Insurance b) Prompt Corrective Agenda
Company Limited (NICL)? c) Prompt Corrective Action
a) Rs. 100 crores d) Private Corrective Action
b) Rs. 200 crores e) Prompt Corrective Agency
c) Rs. 500 crores Answer: c)
d) Rs. 1000 crores PCA stands for Prompt Corrective Action.
e) Rs. 600 crores 300) Fitch Ratings revised downwards India’s GDP
Answer: b) growth forecast to _______________ for current fiscal.
The authorized capital and paid-up equity capital of the a) 7.1%
company is Rs.200 crore and Rs.100 crore respectively. b) 7.2%
National Insurance Company Limited (NICL) is a state c) 6.8%
owned general insurance company in India. The company d) 7.4%
headquartered at Kolkata was established in 1906 and e) 7.3%
nationalised in 1972. Answer: b)
297) In which of the following city does not have RBI’s Fitch Ratings revised downwards India’s GDP growth
currency printing facility? forecast to 7.2% for current fiscal citing higher financing cost
a) Dewas and reduced credit availability. In its Global Economic
b) Nasik Outlook, Fitch projected that for 2019-20 and 2020-21
c) Mysore financial years, India’s GDP growth will be 7% and 7.1%
d) Raipur respectively. Fitch had in June projected India to grow at
e) Salboni 7.4% in current fiscal and 7.5% in 2019-20.
Answer: d) 301) What do you understand by term ‘Venture Capital’?
For printing currency, Reserve Bank of India (RBI) has four a) A short-term capital provided to industries
facilities at Dewas, Nasik, Mysore and Salboni. b) A long-term start-up capital provided to new entrepreneurs
298) Individual taxpayers having taxable annual income c) Funds provided to industries at times of incurring losses
up to Rs _______________ will not be required to pay any d) Funds provided for replacement and renovation of
income tax. industries
a) Rs.5 lakhs e) None of these
b) Rs.3 lakhs Answer: b)
c) Rs.7 lakhs Venture capital is financing that investors provide to startup
d) Rs.4 lakhs companies and small businesses that are believed to have
e) Rs.6 lakhs long-term growth potential.
Answer: a) 302) REER is the weighted average of nominal exchange
Individual taxpayers having taxable annual income up to Rs.5 rates, adjusted for inflation. What REER reflects?
lakhs will not be required to pay any income tax. a) Value of Indian Currency in International Market
299) What is the full form of PCA? b) Degree of External Competitiveness of Indian Products
a) Prompt Council Action c) Degree of Domestic Competitiveness of Indian Products

d) Depreciation Rate of Indian Currency 305) _______ is short term international capital
e) Inflation Rate of Indian Market movements, motivated by interest rate differential or
Answer: b) revaluation hopes/devaluation fears.
Real Effective Exchange Rate (REER) is the weighted a) Cheap Money
average of nominal exchange rates, adjusted for inflation. b) Dear Money
REER is calculated on the basis of NEER (Nominal Effective c) Hot Money
Exchange Rate). REER captures inflation differentials d) Broad Money
between India and its major trading partners and reflects the e) Narrow Money
degree of external competitiveness of Indian products. Answer: c)
303) A foreign company can access Indian securities Hot Money is short term international capital movements,
market only by issuing IDRs. What “D” denotes in IDR? motivated by interest rate differential or revaluation
a) Direct hopes/devaluation fears.
b) Discount 306) “Ayushman Bharat scheme” will provide free
c) Dividend insurance of upto ______ per family per year at any
d) Day Trading government or private hospitals all over India.
e) Depository a) Rs. 5 lakhs
Answer: e) b) Rs. 3 lakhs
A foreign company desirous of accessing Indian securities c) Rs. 2 lakhs
market for the purpose of raising funds is not permitted to d) Rs. 1 lakhs
directly list its equity shares on an Indian stock exchange. It e) Rs. 8 lakhs
can only do it by issuing Indian Depository Receipts (IDRs). Answer: a)
304) Which article of the Indian Constitution envisages The government-sponsored health insurance scheme will
‘Annual Financial Statement’ generally known as provide free coverage of upto Rs 5 lakh per family per year at
‘Budget’? any government or even empanelled private hospitals all over
a) Article 282 India.
b) Article 110 307) What amount of loan agreement was recently signed
c) Article 360 between Indian government and ‘Asian Development
d) Article 105 Bank’ to improve state highways in Bihar?
e) Article 112 a) $100 million
Answer: e) b) $150 million
Article 112 of the Indian Constitution envisages the Annual c) $225 million
Financial Statement of the government. This annual d) $200 million
statement displays the revenue and expenditure of the last e) $250 million
year and estimates of revenue and expenditure for the coming Answer: d)
financial year. In November, 2018, the Asian Development Bank (ADB)
and the Government of India signed a $200 million loan in
New Delhi to fund upgradation of 230 kilometers State

Highways in Bihar under ‘Bihar State Highways III Project private sector participation. NABARD is the NIE (National
(BSHP-III)’. Implementation Entity) for ‘Adaptation Fund’ of UNFCC
308) The Reserve Bank of India (RBI) has announced to and National Adaption Fund for Climate Change (NAFCC).
transfer Rs. 28,000 crores as interim dividend to the 310) According to Reserve Bank of India, bank credit
Government of India in the current Financial Year (FY) rose to __________ percent for the fortnight to March 29?
2018-19. What was the total amount earned by ‘Union a) 13.24%
Government’ as dividend from RBI in fiscal year 2018- b) 11.42%
19? c) 12.31%
a) Rs. 28,000 crores d) 14.21%
b) Rs. 36,000 crores e) None of these
c) Rs. 82,000 crores Answer: a)
d) Rs. 75,000 crores According to the data of Reserve Bank of India, which was
e) Rs. 68,000 crores released on 11th April, 2019, bank credit rose 13.24% to Rs
Answer: e) 97.67 lakh crore for the fortnight to March 29.This is the
The Reserve Bank of India (RBI) has announced to transfer second consecutive robust credit growth after the same had
Rs. 28,000 crores as interim dividend to the Government of declined to 4.54 percent in FY17 at Rs 78.41 lakh crore,
India in the current Financial Year (FY) 2018-19, in order to which was the lowest since 5 decades.Deposits have grown
enable the union government to meet its revised fiscal deficit by 10.03 percent to Rs 125.72 lakh crore during the same
target of 3.4% of the GDP for FY19. In August 2018, it period.
transferred Rs. 40,000 crore taking the total to Rs. 68,000 311) In National Financial Switch service, the limit per
crores as dividend for the 2018-19 fiscal. The RBI Act, 1934 transaction is restricted to less than _________.
requires RBI to pay the Government its surplus after making a) Rs. 20000
provisions for bad and doubtful debts, depreciation in assets b) Rs. 25000
and contribution to staff and superannuation. c) Rs. 50000
309) Which organization has signed USD 100 million d) Rs. 10000
agreement with ‘Green Climate Fund’ to boost solar e) Rs. 40000
power projects in India? Answer: c)
a) SIDBI In National Financial Switch service, the limit per transaction
b) NABARD is restricted to less than Rs. 50000. National Financial Switch
c) RBI (NFS) is the largest interconnected network of automated
d) IRDAI teller machines (ATMs) in India. It was taken over by NPCI
e) NITI Aayog from Institute for Development and Research in Banking
Answer: b) Technology (IDRBT) in 2009.
In December, 2018, the National Bank for Agriculture and 312) Which among the following is authorized by RBI to
Rural Development (NABARD) signed a loan agreement store rupee notes and coins?
worth USD 100 million with Green Climate Fund (GCF) to a) Currency Bag
boost rooftop solar power capacity projects through the b) Currency Block

c) Currency Chest The interest rates on banks’ contribution to RIDF, other
d) Currency Reserve Funds, the tenure of deposits should be fixed by Reserve
e) None of these Bank of India from time to time. The Scheduled Commercial
Answer: c) Banks having any shortfall in lending to priority sector shall
Currency chests are branches of selected banks authorized by be allocated amounts for contribution to the Rural
the RBI to stock rupee notes and coins. The main function of Infrastructure Development Fund (RIDF) established with
currency chests is to facilitate note supply. The cash reserve NABARD by RBI. Also, the contribution amount to the other
ratios of the commercial banks are also kept at currency Funds with NABARD/NHB/SIDBI/ MUDRA Ltd. Are also
chests. Currency chests are usually located at authorized decided by the Reserve Bank from time to time.
select branches of the scheduled bank. 315) To use the services of which of the following, you do
313) If the credit balance in a savings account has not not need to have your KYC done with the services?
been operated for ten years, the amount should be a) Amazon Pay
transferred to which fund? b) Mobikwik
a) Unpaid Contract Fund c) ICICI salary account
b) Cash Reserve Fund d) Paytm e-wallet
c) Unclaimed Bank Deposit Fund e) None of the above
d) Inactive Deposit Fund Answer: e)
e) Depositor Education and Awareness Fund Know Your Customer commonly known as KYC, enables a
Answer: e) bank/financial institution to validate the identity of its
As per the Reserve Bank of India, the bank deposit which has servicing customers. In order to open a bank account, one
not been claimed for 10 years or more would be transferred needs to submit Aadhaar/enrolment number and PAN as
to Depositor Education and Awareness Fund Scheme. ‘proof of identity and proof of address’ For using the e-wallet
Reserve Bank of India established a Fund under the Section services like Amazon Pay &Mobikwik, one needs to have
26A of the Banking Regulation Act, 1949.The amounts to be their KYC done by providing any one of the identity proof as
credited to the Fund by banks shall be deposited in the applicable
specified account maintained with the RBI. 316) What is India’s GDP growth rate for October-
314) The interest rates on banks’ contribution to Rural December 2018 quarter?
Infrastructure Development Fund should be fixed by a) 7%
________. b) 6.9%
a) Ministry of Finance c) 6.7%
b) National Bank for Agriculture and Rural Development d) 6.8%
e) 6.6%
c) Ministry of Rural Development Answer: e)
d) Reserve Bank of India India's GDP growth moderated to 6.6% in the Oct-Dec
e) Individual Banks quarter of 2018-19, the lowest in five quarters, from 7% in
Answer: d) the previous quarter. India is still the fastest-growing major

economy. GDP growth forecast was revised for the current e) 7.0%
fiscal from 7.2 to 7%. Answer: d)
317) Total gross GST revenue collected in the month of As per Moody’s report, Indian economy is expected to grow
February 2019 is ₹ ________ cr or es. at 7.3 per cent in calendar year 2019 and 2020. In 2018-19
a) 90,928 fiscal Indian economy is estimated to have grown 7%, lower
b) 75,937 than 7.2% in 2017-18
c) 86,610 320) Recently, the government approved a Rs. 14,000
d) 97,247 crore special economic zone (SEZ) project of Adani
e) 1,00,273 Power in _____________.
Answer: d) a) Uttar Pradesh
Total gross GST revenue collected in the month of February b) Jharkhand
2019 is Rs. 97,247 crore of which CGST is Rs. 17,626 crore, c) Bihar
SGST is Rs. 24,192 crore, IGST is Rs. 46,953 crore& cess is d) Tamil Nadu
Rs.8,476 crore. Revenue in February 2018 was Rs. 85,962 e) Odisha
crore. Answer: b)
318) The Asian Development Bank (ADB) and the The government approved a Rs. 14,000 crore special
Government of India signed a $_____ Million Loan economic zone (SEZ) project of Adani Power in Jharkhand,
Agreement today to operationalize two lines for the which will export entire power generated to Bangladesh. It
Mumbai Metro Rail System. will be ready by the end of 2022.Exports from SEZs grew by
a) 900 about 15% to ₹5.52 trillion in 2017-18.
b) 845 321) The term used for an economic condition, in which
c) 926 there are only two large buyers for a specific product or
d) 876 service is___________.
e) 918 a) Duopoly
Answer: c) b) Duodecimo
The Asian Development Bank (ADB) and the Government of c) Duopsony
India signed a $926 Million Loan Agreement today to d) Duologues
operationalize two lines for the Mumbai Metro Rail System. e) Duodenary
The Project also marks ADB’s first co-financing with NDB, Answer: c)
which will provide $260 million. ADB President- An economic condition, in which there are only two large
TakehikoNakao Headquarters- Mandaluyong, Philippines. buyers for a specific product or service is termed as
319) As per Moody’s report, Indian economy is expected Duopsony. Members of a duopsony have great influence over
to grow at ____________ in calendar year 2019 and 2020 sellers and can effectively lower market prices for their
a) 7.8% supplies
b) 6.7% 322) In which of the following years symbol of Indian
c) 8.1% rupee came into existence?
d) 7.3% a) 2012

b) 2011 Answer: b)
c) 2009 Benchmark Prime Lending Rate is an abbreviation of BPLR.
d) 2010 It is the rate which banks charge to their customers with good
e) 2008 credit history. Banks are free to set their prime lending rate.
Answer: d) 325) What is the minimum amount of a Certificate of
The Indian rupee is the official currency of India. Designed Deposit?
by Udaya Kumar, it was presented to the public by the a) 10 lakhs
Government of India on 15 July 2010. The new sign is a b) 50 lakhs
combination of the Devanagari letter "र" ("ra") and the Latin c) 1 lakh
d) 20 Thousand
capital letter "R" without its vertical bar (like the R rotunda).
e) 5 lakhs
The parallel lines at the top (with white space
Answer: c)
323) Which of the following International financial
Minimum amount of a Certificate of Deposit (CD) should be
institutions compiles the system of national accounts
Rs.1 lakh, i.e., the minimum deposit that could be accepted
which aim at measuring GDP as per national Standards?
from a single subscriber should not be less than Rs.1 lakh,
a) Asian Infrastructure Investment Bank
and in multiples of Rs. 1 lakh thereafter.
b) Central American Bank for Economic Integration
326) GST collections in February dropped to
c) International Monetary Fund
₹____________in Febr uar y fr om ₹1.02 lakh cr or e in the
d) International Investment Bank
previous month.
e) World Bank
a) 92,247 crore
Answer: c)
b) 96,247 crore
The System of National Accounts (SNA) is compiled by
c) 94,247 crore
International Monetary Fund, it is the internationally agreed
d) 97,247 crore
standard set of recommendations on how to compile
e) 99,747 crore
measures of economic activity Consequently, the national
Answer: d)
accounts are one of the building blocks of macroeconomic
GST collections in February dropped to Rs.97,247 crore in
statistics forming a basis for economic analysis and policy
February from Rs.1.02 lakh crore in the previous month. The
formulation. Economic and financial data from member
number of sales return or GSTR-3B filed for the month of
countries are used to compile annual (and sometimes
January up to February 28, 2019 was 73.48 lakh.
quarterly) data on gross product, investment, capital
327) RBI recently, imposed penalties worth Rs.
transactions, government expenditure and foreign trade.
______crore on IDBI, Dena Bank.
324) BPLR was introduced by the Reserve Bank of India
a) 2
in 2003. In BPLR, ‘P’ denotes –
b) 3
a) Priority
c) 4
b) Prime
d) 5
c) Purchasing
e) 6
d) Personal
Answer: b)
e) Payment

RBI has imposed a monetary penalty of Rs. 2 crore on Dena e) 51
Bank. Rs 1 crore penalty was imposed on IDBI Bank for Answer: c)
non-compliance of its regulatory directions on time-bound State Bank of India (SBI) and Hitachi Payment Services Pvt
implementation and strengthening of SWIFT related Ltd, a wholly-owned subsidiary of Hitachi Ltd, launched
operational controls. their merchant-acquiring joint venture, SBI Payment Services
328) Centre and Asian Development Bank (ADB) signed a Pvt Ltd (SBIPSPL) in Mumbai. SBI has a 74 per cent stake &
_______ million-dollar loan agreement to operationalize 26% is with Hitachi.
two lines of the Mumbai Metro Rail System 331) TDR is a method for controlling land use to
a) 726 complement land-use planning and zoning for more
b) 826 effective urban growth management and land
c) 926 conservation. Expand TDR
d) 1006 a) Transferable Development Rights
e) 786 b) Transaction Delayed Reserve
Answer: c) c) Tax Deducted Review
Centre and Asian Development Bank (ADB) signed a 926- d) Terminal Development Resource
million-dollar loan agreement to operationalize two lines of e) None of these
the Mumbai Metro Rail System. It is the single largest Answer: a)
infrastructure project loan in ADB history. Transferable Development Rights (TDR) is a method for
329) ICICI Bank will acquire 9.9% stake in which of the controlling land use to complement land-use planning and
following Non-Banking Finance Company? zoning for more effective urban growth management and
a) IL&FS land conservation
b) Indiabulls 332) In which of the following fund transfer system, the
c) Kisan Finance transactions received up to a particular time are
d) Bajaj Finance processed in batches?
e) Capital First a) RTGS
Answer: c) b) IMPS
ICICI Bank will acquire 9.9% stake in Non-Banking Finance c) NEFT
Company (NBFC) Kisan Finance for nearly Rs.18 crore. d) All the above
Kisan Finance, which was incorporated in December 2017, e) Only a) and c)
had registered a net loss of Rs.48 lakh in 2017-18. Answer: c)
330) SBI to form Payment Joint venture with Hitachi National Electronic Funds Transfer (NEFT) is a nation-wide
Payment Services Pvt Ltd in which SBI’s stake would be payment system. Under this Scheme, individuals can
______%. electronically transfer funds from any bank branch to any
a) 80 individual having an account with any other bank branch in
b) 75 the country participating in the Scheme. NEFT transactions
c) 74 are settled in batches.
d) 50

333) Which of these is the first Destination Bank to go live ATMs, Merchant Local Locations, and automated business
with Net Banking and Debit Card-based e-mandate correspondents.
authentication? 336) Name the first central bank in the Asia-Pacific
a) ICICI Bank region to begin explicit interest rate easing cycle by
b) Punjab National bank cutting the policy rate?
c) Kotak Mahindra Bank a) Bank of Mexico
d) HDFC Bank b) Federal Reserve
e) Axis Bank c) RBI
Answer: c) d) Central Bank of the Russia
Kotak Mahindra Bank is the first Destination Bank to go live e) None of these
with Net Banking and Debit Card-based e-mandate Answer: c)
authentication The Reserve Bank of India (RBI) is the first central bank in
334) Which of the following is an integrated bill payment the Asia-Pacific region to have begun explicit interest rate
system in India offering interoperable and accessible bill easing cycle by cutting the policy rate back-to-back in the last
payment service to customers? two monetary policy reviews in 2019
a) Unified Payments Interface 337) The Central government has planned to raise the
b) Bharat Bill Payment System import duty on wheat from 30% to ______
c) Immediate Payment Service a) 40%
d) National Common Mobility Card b) 35%
e) None of these c) 45%
Answer: b) d) 50%
Bharat Bill Payment System is an integrated bill payment e) 55%
system in India offering interoperable and accessible bill Answer: a)
payment service to customers The government is likely to raise the import duty on wheat
335) ________ can be used for purchase of goods and from the current 30% to 40% to rule out any possibility of
services and also permit cash withdrawal at ATMs, cheaper imports amid the harvesting of the new crop.
Merchant Local Locations, and automated business 338) As per World Economic Forum (WEF) report, India
correspondents. is set to uplift households out of poverty and reduce the
a) Closed System Payment Instruments share of households below the poverty line from current
b) Semi-closed System Payment Instruments 15 percent to 5 percent by which year?
c) Open System Payment Instruments a) 2025
d) Semi-Open System Payment Instruments b) 2035
e) None of these c) 2050
Answer: c) d) 2030
Open System Payment Instruments can be used for purchase e) 2040
of goods and services and also permit cash withdrawal at Answer: d)

India will uplift around 25 million households out of poverty the following requirements a does company need to fulfill
and reduce the share of households below the poverty line to issue PPIs in India?
from 15 percent today to 5 percent by 2030, the World a) The company should be incorporated in India
Economic Forum (WEF) said in a report b) The company should have a minimum paid-up capital of
339) SEBI has reduced the minimum subscription Rs. 5 crore
requirement for InvITs from Rs ________ and its c) The company should have a positive net worth of Rs. 1
multiple crore at all the times
a) Rs 2 lakh d) Only a) and b)
b) Rs 5 lakh e) All a), b) and c)
c) Rs 1 lakh Answer: e)
d) Rs 4 lakh Pre-paid Payment Instruments (PPIs) are defined in the RBI
e) Rs 10 lakh Guidelines issued under the Payment and Settlements
Answer: c) Systems Act, 2005 as payment instruments that facilitate the
Minimum subscription requirement for InvITs: Rs 1 purchase of goods and services, including funds transfer,
lakh (and its multiple) [earlier its was Rs 10 lakhs] against the value stored on such instruments. The value
340) The World Bank has approved Rs.6000 crore to stored on such instruments represents the value paid for by
Central Sector Scheme of the Ministry of Water the holders by cash, by debit to a bank account, or by credit
Resources, River Development and Ganga Rejuvenation card. Only those companies incorporated in India and have a
for which scheme? minimum paid-up capital of Rs. 5 crore and minimum
a) PradhanMantriFasalBimaYojana positive net worth of Rs. 1 crore at all the times are permitted
b) AtalBhujalYojana to issue PPIs in India.
c) Atal Pension Yojana 342) If a banking company fails to maintain the required
d) PradhanMantriGaribKalyanYojana amount of SLR, what interest is it liable to pay to RBI on
e) Atal Mission for Rejuvenation and Urban Transformation the shortfall?
Answer: b) a) Rate of one percent per annum above the Reverse Repo
The World Bank has approved AtalBhujalYojana (ABHY), a Rate
Rs.6000 crore Central Sector Scheme of the Ministry of b) Rate of three percent per annum above the Repo Rate
Water Resources, River Development and Ganga c) Rate of three percent per annum above the Bank Rate
Rejuvenation. The scheme is to be implemented over a period d) Rate of three percent per annum above the Reverse Repo
of five years from 2018-19 to 2022-23, with World Bank Rate
assistance. The scheme proposal has already been e) Rate of one percent per annum above the Bank Rate
recommended by the Expenditure Finance Committee and Answer: c)
the Ministry will be seeking Cabinet approval for the project If a banking company fails to maintain the required amount
shortly. of SLR, it shall be liable to pay to RBI in respect of that
341) Pre-paid Payment Instruments (PPIs) facilitate the default, the penal interest for that day at the rate of three
purchase of goods and services, including funds transfer, percent per annum above the Bank Rate on the shortfall and
against the value stored on such instruments. Which of if the default continues on the next succeeding working day,

the penal interest may be increased to a rate of five per cent c) Kolkata
per annum above the Bank Rate for the concerned days of d) Nashik
default on the shortfall. e) Guwahati
343) The mutual fund shall ensure that the repurchase Answer: a)
price of the units of a close-ended scheme shall not be Equitas Small Finance Bank is headquartered in Chennai
lower than ______ of the Net Asset Value. city. It was launched in 2007 as a Microfinance institution
a) 95% with just 4 branches. It was started as a small finance bank in
b) 93% 2016.
c) 107% 346) Who has become the first lender to charge for UPI
d) 95% (Unified Payments Interface) use?
e) 92% a) ICICI Bank
Answer: a) b) RBL Bank
While determining the prices of the units, the mutual fund c) South Indian Bank
shall ensure that the purchase price is not lower than 93% of d) Kotak Mahindra Bank
the Net Asset Value and the sale price is not higher than e) None of these
107% of the Net Asset Value. The repurchase price of the Answer: d)
units of a close-ended scheme shall not be lower than 95% of Kotak Mahindra Bank becomes the first lender to Charge for
the Net Asset Value. UPI Use.For each Kotak Bank account, the first 30 UPI fund
344) In which year did SEBI provide regulatory transfers will be free, after which a charge will be levied on
notification on mutual funds? all fund transfers from the bank account.Unified Payments
a) 1989 Interface (UPI) is an instant real-time payment system
b) 1999 developed by National Payments Corporation of India
c) 1993 facilitating inter-bank transactions.
d) 1975 347) The Union government has decided to give how
e) 1985 many billion USD financial assistanceto the island nation
Answer: c) of Maldives?
SEBI notified regulations for mutual funds in 1993. a) $ 1.2 billion
Thereafter, mutual funds sponsored by private sector entities b) $ 1.4 billion
were allowed to enter the capital market. The regulations c) $ 1.6 billion
were fully revised in 1996 and have been amended thereafter d) $ 1.8 billion
from time to time. As far as mutual funds are concerned, e) $ 2.0 billion
SEBI formulates policies, regulates and supervises mutual Answer: b)
funds to protect the interest of the investors The Union government has decided to give USD 1.4 billion
345) Equitas Small Finance Bank is a _____________ to the island nation of Maldives. This decision came after
based financial institution. Maldivian president Ibrahim Mohamed Solih met Prime
a) Chennai Minister NarendraModi during his 3-days visit to India. This
b) Jalandhar is Solih’s first foreign trip after he was sworn in as the

President of Maldives in a ceremony on 17th November 350) What percentage of stake has been acquired by
2018, which PM Modi had also attended. Asian Development Bank in micro-financier company
348) Government of India has recently signed $ 300 ‘Annapurna Finance’ recently?
million loan agreement with which international a) 24%
organisation to support IIFCL (Infrastructure Finance b) 14%
Company Limited) of India? c) 49%
a) World Bank d) 76%
b) New Development Bank e) 51%
c) International Monetary Fund Answer: b)
d) Asian Development Bank In February, 2019, Asian Development Bank (ADB) bought
e) None of these 14% stake in micro-financier Annapurna Finance for Rs. 137
Answer: d) crores. ADB Bank bought this stake with a motive of
Recently in November, 2018, the Asian Development Bank attracting long -term funds from global lenders and investors.
(ADB) and the Government of India signed a $300 million 351) Deposit Insurance and Credit Guarantee
Loan Agreement to support lending by ‘India Infrastructure Corporation is a subsidiary of Reserve Bank of India. The
Finance Company Limited (IIFCL)’. authorized capital of DICGC is ______
349) Recently Union government has announced to a) 100 Crore
increase the contribution of government up to what b) 200 Crore
percentage in “National Pension Scheme (NPS)”? c) 150 Crore
a) 10% d) 50 Crore
b) 14% e) 250 Crore
c) 12% Answer: d)
d) 8% DICGC is the fully owned subsidiary of Reserve bank of
e) 15% India. It was established in 1978 under the Deposit Insurance
Answer: b) Credit Guarantee Corporation Act,1961 for the purpose of
Finance Minister ArunJaitley recently announced the rise in providing insurance of deposits and guaranteeing of credit
contribution of the government in National Pension Scheme facilities. The authorized capital of the Corporation is 50
(NPS) to 14 per cent from existing 10 per cent. The change in crore, which is fully issued and subscribed by the Reserve
contribution was recommended by Committee of Secretaries Bank of India (RBI).
(CoS), thus resulting in a total corpus of 24% from the 352) The CVV/CVC code (Card Verification Value/Code)
previous 20%. Out of the 24%, 14 per cent would be located on the back of your visa debit card is ___ digit.
contributed by the government and the remaining 10 per cent a) Two
by the employees. Furthermore, he also made entire b) Five
withdrawal amount tax free at the time of retirement by c) Four
enhancing the tax exemption limit for lump sum withdrawal d) Three
on exit to 60%. e) Six
Answer: d)

The CVV/CVC code (Card Verification Value/Code) is a) Bill of Sale
located on the back of your credit/debit card on the right side b) Balloon Payment
of the white signature strip; it is always the 3 digits in case of c) Chattel mortgage
VISA and MasterCard. d) Liquid Asset
353) Under Liberalised Remittances scheme, remittances e) Price Ceiling
be made in ______________ Answer: c)
a) US Dollars only Chattel mortgage is a loan extended to an individual or a
b) Euro only company on a movable property. Here, the ‘chattel’ or the
c) Both the US Dollar & Euro movable personal property could be a car, or a mobile home
d) Any freely convertible foreign currency can be used as a security to extend the loan.
e) None of the above 356) IDBI Bank has been categorized as ‘Private Sector
Answer: d) Lender’ by RBI. What percentage of stake has been
Under LRS, remittances can be made in any freely acquired by Life Insurance Corporation of India (LIC) in
convertible foreign currency All resident individuals, the bank recently?
including minors, are allowed to freely remit up to USD a) 49%
2,50,000 per financial year (April – March) for any b) 26%
permissible current or capital account transaction or a c) 65%
combination of both. d) 76%
354) A Priority sector lending certificate is valid for e) 51%
_____________ Answer: e)
a) One complete financial year In March 2019, The Reserve Bank of India categorized IDBI
b) 3 months Bank as a Private Sector Bank with effect from January 21,
c) 4 months 2019 following Life Insurance Corporation of India (LIC) has
d) 6 months acquired 51 per cent of the total paid-up equity share capital
e) 18 months of the bank.
Answer: a) 357) As announced in Interim Budget 2019-20, what is
All Priority sector lending certificates are valid in 1 complete target of Fiscal deficit for financial year 2019-20?
financial year, March-April cycle. Priority Sector Lending a) 3.1% of GDP
Certificates (PSLCs) are a mechanism to enable banks to b) 3.5% of GDP
achieve the priority sector lending target and sub-targets by c) 3.4% of GDP
the purchase of these instruments in the event of a shortfall. d) 4.4% of GDP
Under the PSLC mechanism, the seller sells fulfilment of e) 2.8% of GDP
priority sector obligation and the buyer buys the obligation Answer: c)
with no transfer of risk or loan assets. The target of fiscal deficit for 2019-20 is 3.4% of GDP while
355) Which of the following terms is used to define a loan for next year it is estimated to be 3.1% of GDP.
extended to an individual or a company on a movable 358) The Defence Acquisition Council (DAC) accorded
property? approval for the acquisition of defence equipment worth

nearly Rs _______________ crore which includes e) USD 400 million
BrahMos Missiles, and Armoured Recovery Vehicles Answer: d)
(ARVs) for Battle Tank Arjun. The Union Government, Rajasthan and the World Bank
a) Rs. 5000 crore signed a USD 250 million Development Policy Loan (DPL)
b) Rs. 3000 crore to support Rajasthan in improving the performance of its
c) Rs. 7000 crore Electricity Distribution Sector under the State’s ‘24x7 Power
d) Rs. 1000 crore for All’ program.
e) Rs. 4000 crore 361) An emerging market economy is highly classified
Answer: b) with relatively- one in which the country is becoming a
The Defence Acquisition Council (DAC) accorded approval developed nation and is determined through many
for the acquisition of defence equipment worth nearly Rs socio__________
3000 crore which includes BrahMos Missiles, and Armoured a) Economic factors
Recovery Vehicles (ARVs) for Battle Tank Arjun. The b) External factors
decision was taken at a meeting chaired by Defence Minister c) Commercial factors
NirmalaSitharaman. d) GDP factors
359) The Central government has announced e) Growth factors
________rupee award for states that would complete the Answer: a)
household electrification early under the Saubhagaya An emerging market economy is highly classified with
scheme. relatively - one in which the country is becoming a developed
a) 200 crore nation and is determined through many socio- economic
b) 50 crore factors.
c) 150 crore 362) Depositor Education and Awareness Fund (DEAF) is
d) 10 crore maintained by which of the following?
e) 100 crore a) NABARD
Answer: e) b) RBI
The Power Ministry announced Rs 100 croreaward for states c) Public Provident Fund Authorities
that would complete the household electrification early under d) SIDBI
the Saubhagya scheme. e) IRDA
360) The Union Government, Rajasthan and the World Answer: b)
Bank signed a ______ million Development Policy Loan Depositor Education and Awareness Fund (DEAF) Scheme
(DPL) to support Rajasthan in improving the was established in 2014 and was inserted in the Banking
performance of its Electricity Distribution Sector under Regulation Act, 1949 empowering the central bank. All
the State’s ‘24x7 Power for All’ program. banks are required to transfer money lying in accounts that
a) USD 1200 million have been inoperative for at least 10 years to the DEAF
b) USD 725 million according to specific guidelines.
c) USD 500 million 363) Indian Financial System Code consists of how many
d) USD 250 million alphanumeric digit?

a) 12 c) External Commercial Borrowings
b) 11 d) FII
c) 10 e) NRI bank account
d) 9 Answer: b)
e) 8 The Balance of payments for a country is calculated by the
Answer: b) difference of Capital Account and Current account. Both the
IFSC is an 11-character codewith the first four alphabetic accounts have different components included in it.
characters representing the bank name, and the last six Current Account: Components – Net Import-Export (Import
characters (usually numeric, but can be alphabetic) minus Export); Incomes (Profits, Interests, Dividend);
representing the branch. The fifth character is 0 (zero) and Transfers (Donations, Gifts. etc.)
reserved for future use. Bank IFS Code is used by the NEFT Capital Account: Components – Investment (FDI, FII); Loan
& RTGS systems to route the messages to the destination (Government Borrowings, External commercial borrowings);
banks/branches. Bank account transfers by NRIs, etc.
The Indian Financial System Code (IFS Code) is an 366) The Union Government has allocated how many
alphanumeric code that uniquely identifies a bank-branch crore rupees for the development of 40 satellite launch
participating in the two main Electronic Funds Settlement vehicles in the next four years?
Systems in India. a) Rs. 10,000crore
364) For which of the following debt instruments, not b) Rs. 10,200 crore
having a fixed rate of interest over the life of the c) Rs.10,300crore
instrument, can ‘Floating Interest Rate’ be applied? d) Rs.10,700crore
a) A loan e) Rs.10,900crore
b) A bond Answer: e)
c) A mortgage The Union Government has allocated 10,900 crore rupees for
d) A credit the development of 40 satellite launch vehicles in the next
e) All of these four years.Dr Sivan stated that Chandrayan Mission will be
Answer: e) launched within three months. It will land in one part of the
An interest rate that is allowed to move up and down with the Moon which is still unexplored. The human space flight
rest of the market or along with an index. This contrasts with Gaganyaan is planned to be launched by 2022, the 75th
a fixed interest rate, in which the interest rate of a debt anniversary of Independence.
obligation stays constant for the duration of the agreement. 367) India Post Payments Bank (IPPB) was setup under
A floating interest rate can also be referred to as a variable the Department of Posts, Ministry of Communication
interest rate because it can vary over the duration of the debt with 100% equity owned by Government of India. How
obligation. many Post Offices across urban and rural India, activated
365) Which of the following component of external sector as banking access points?
comes under Current Account in India? a) 3750
a) FDI b) 1200
b) Interest payments received by government c) 650

d) 3250 June 15, 2018 regarding ESPS with a proposal for issuance of
e) 5700 up to 10 crore equity shares to its employees, the bank said in
Answer: d) a regulatory filing.
3,250 Post Offices across urban and rural India, activated as 370) Prime Minister NarendraModi has launched
banking access points of IPPB. Ayushman Bharat, world's largest government-funded
368) As per RBI Report on Trend and Progress of healthcare scheme in Jharkhand's capital Ranchi. It will
Banking in India, what % of the total complaints received offer a benefit cover of ___________________ per family
by all BO offices, is from tier-1 cities like New Delhi, per year.
Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad? a) Rs 2 lakh
a) 67% b) Rs 5 lakh
b) 75% c) Rs 7 lakh
c) 49% d) Rs 10 lakh
d) 79% e) Rs 15 lakh
e) 57% Answer: b)
Answer: e) Prime Minister NarendraModi launched Ayushman Bharat,
The number of complaints registered at banking ombudsman world's largest government-funded healthcare scheme in
offices have seen a 25% increase in the fiscal year 2018. Jharkhand's capital Ranchi. The Centre's flagship scheme has
“The banking ombudsman offices in tier-1 cities like New been renamed as PM Jan ArogyaYojana (PMJAY). The
Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad scheme will become operational from September 25 on the
accounted for more than 57% of the total complaints received birth anniversary of PanditDeendayalUpadhyay. Ayushman
by all BO offices,” the RBI Report on Trend and Progress of Bharat-National Health Protection Scheme (AB-NHPS) will
Banking in India has stated. have a defined benefit cover of Rs 5 lakh per family (on a
369) Which Bank has announced an ESOP scheme with a family floater basis) per year for secondary and tertiary care
view to retaining its talent and incentivising staff by hospitalisation. It will offer a benefit cover of Rs 5 lakh per
issuing up to 10 crore equity shares? family per year. It will subsume the existing
a) Yes Bank RashtriyaSwasthyaBimaYojana (RSBY), launched in 2008
b) HDFC Bank by the UPA government.
c) State Bank of India 371) In Notice Money Market, the tenor of the
d) ICICI Bank transactions is from ________
e) Punjab National Bank a) 2-7 days
Answer: e) b) 2-14 days
State-run Punjab National Bank (PNB) has announced an c) 2-21 days
ESOP scheme with a view to retaining its talent and d) 2-28 days
incentivising staff by issuing up to 10 crore equity shares. e) 2-90 days
The bank stated it will issue up to 10 crore equity shares to its Answer: b)
employees under 'Employee Stock Purchase Scheme (ESPS)'.
A note is being placed to board in its ensuing meeting dated

In money market, the amount that is lent for one day is If the claim is exceeding one lakh claims can be settled by
known as “call money” and, if it exceeds one day or two days legal evidence that is by probate of will or succession
to 14 days is referred to as “notice money.” certificate in Post Office Saving Schemes.
372) ___________ is a voluntary market body for the 374) ‘Shishu’, ‘Kishore’ and ‘Tarun’ are associated with-
bond, money and derivatives markets. a) SBI
a) RBI b) RESERVE BANK
b) SEBI c) IDBI
c) IRDAI d) MUDRA BANK
d) FIMMDA e) NABARD
e) UIDAI Answer: d)
Answer: d) The initial products and schemes (MUDRA) under this
The Fixed Income Money Market and Derivatives umbrella have already been created and the interventions
Association of India (FIMMDA), an association of have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify
Scheduled Commercial Banks, Public Financial Institutions, the stage of growth/development and funding needs of the
Primary Dealers and Insurance Companies was incorporated beneficiary micro unit / entrepreneur as also provide a
as a Company under section 25 of the Companies Act,1956 reference point for the next phase of graduation / growth for
on June 3rd, 1998. FIMMDA is a voluntary market body for the entrepreneur to aspire for:
the bond, money and derivatives markets. FIMMDA has Shishu: covering loans uptoRs. 50,000/-
members representing all major institutional segments of the Kishor: covering loans above Rs. 50,000/- and uptoRs. 5 lakh
market. The membership includes Nationalized Banks such Tarun: covering loans above Rs. 5 lakh and uptoRs. 10 lakh
as State Bank of India, its associate banks and other 375) National Income Estimate is prepared by _________
nationalized banks; Private sector banks such as ICICI Bank, a) Department of Economics and affairs
HDFC Bank, IDBI Bank; Foreign Banks such as Bank of b) CSO (Central Statistical Organization)
America, ABN Amro, Citibank, Financial institutions such as c) RBI
IDFC, EXIM Bank, NABARD, Insurance Companies like d) Finance ministry
Life Insurance Corporation of India (LIC), ICICI Prudential e) SEBI
Life Insurance Company, Birla Sun Life Insurance Company Answer: b)
and all Primary Dealers. The Government of India appointed National Income
373) If the claim is exceeding ___________ claims can be Committee in 1949. The committee was chaired by Prof. P.C.
settled by legal evidence that is by probate of will or Mahalanobis and had Prof D.R. Gadgil and Dr. V.K.R.V.
succession certificate in Post Office Saving Schemes? Rao as members . The first report of the committee was
a) three lakh presented in 1951. According to the first report, the National
b) four lakh Income of India for 1948-49 was Rs. 8,710 crore and the per
c) one lakh capita income was Rs. 225. Since 1955 the national income
d) six lakh estimates are being prepared by Central Statistical
e) nine lakh Organisation.
Answer: c)

376) What is the Bank Rate, according to first Bi-monthly India to launch the e-payment system. There will be no extra
Monetary Policy statement for 2019-20? charges for transactions till Rs 2,000; over and above that,
a) 5.75% charges will be levied.
b) 6.00% 379) In the event of death of a labourer during service,
c) 6.25% the amount to be paid by EPFO has been enhanced from
d) 6.50% Rs. 2.5 lakh to Rs. ____.
e) None of these a) Rs 3 lakh
Answer: c) b) Rs 6 lakh
As per RBI’s first Bi-monthly Monetary Policy statement for c) Rs 7 lakh
2019-20, The marginal standing facility (MSF) rate and the d) Rs 9 lakh
Bank Rate to 6.25 per cent. e) Rs 4 lakh
Bank Rate is the rate at which the Reserve Bank is ready to Answer: b)
buy or rediscount bills of exchange or other commercial The ceiling of ESI's eligibility cover has been increased from
papers for the long term. Rs. 15,000 pm to Rs. 21,000 pm. Minimum pension for every
377) The farmers pursuing the activities of animal labourer has been fixed at Rs. 1,000 per month. In the event
husbandry and fisheries availing long through Kisan of death of a labourer during service, the amount to be paid
Credit Card will be provided with the benefit of ___ by EPFO has been enhanced from Rs. 2.5 lakh to Rs. 6 lakh.
interest subvention. Under Anganwadi and AshaYojana honorarium has been
a) 1% enhanced by about 50% for all categories of workers.
b) 1.6% 380) Under the PradhanMantriShram Yogi Maan-Dhan
c) 1.8% scheme, Workers of the unorganised sector will receive
d) 2% how much Rupees pensions after attaining the age of 60
e) 2.8% years?
Answer: d) a) Rs. 3000
The farmers pursuing the activities of animal husbandry and b) Rs. 1000
fisheries availing long through Kisan Credit Card will be c) Rs. 6000
provided with the benefit of 2% interest subvention. d) Rs. 1200
378) Which district court has become the first in India to e) None of these
accept e-payments? Answer: a)
a) Pune Under the PradhanMantriShram Yogi Maan-Dhan scheme,
b) Bhopal workers of the unorganised sector will receive a minimum
c) Delhi assured pension of three thousand rupees per month after
d) Lucknow attaining the age of 60 years.The workers whose monthly
e) Kolkata income is 15 thousand rupees per month or less and belong to
Answer: a) the entry age group of 18 to 40 years are eligible for the
Pune court is first in India to get the facility of e- scheme.
payment.“The Pune district and sessions court are the first in

381) What is the Paid-up Share Capital of Agriculture SEBI approves rules and laws pertaining to the stock
Insurance Company of India? exchanges.To protect the rights of investors and ensuring
a) Rs. 200 crores safety to their investment.To prevent fraudulent and
b) Rs. 500 crores malpractices by having balance between self-regulation of
c) Rs. 750 crores business and its statutory regulations.To regulate and develop
d) Rs. 100 crores a code of conduct for intermediaries such as brokers,
e) Rs. 600 crores underwriters, etc.
Answer: a) 384) In which of the following years Forward Markets
The paid- up share capital of Agriculture Insurance Company Commission (FMC) merged with the capital markets
of India is Rs. 200 crores, while the Authorised Share Capital watchdog SEBI?
- Rs. 1500 Crores. It was incorporated in 20th December a) 2015
2002 and commenced operations on 1st April 2003. b) 2010
382) Which of the following statements in context of c) 2012
Treasury bills (T- Bills) is not correct? d) 2014
a) T-bills offer short-term investment opportunities, generally e) 2008
up to one year Answer: a)
b) T-bills are available for a minimum amount of Rs.25,000 In the year 2015, Forward Markets Commission (FMC)
c) T-bills auctions are held at the SEBI headquarter. merged with the capital markets watchdog SEBI. The merger
d) Both a) and b) was precipitated with the National Spot Exchange Ltd. scam,
e) All of the above are true which involved a payment crisis of more than Rs. 5000 crore.
Answer: c) This was considered a regulatory failure by the FMC.
T-bills auctions are held at the Reserve Bank of India, 385) Which of the following terms is used to define rise in
Mumbai. Treasury bills (T-bills) offer short-term investment the price of a security or in the value of one currency in
opportunities, generally up to one year. They are useful in terms of another?
managing short-term liquidity. At present, the Government of a) Appreciation
India issues four types of treasury bills, namely, 14-day, 91- b) Accreting
day, 182-day and 364-day. c) Accrued Interest
383) Which of the following not a function of Reserve d) Arbitrage
Bank of India? e) None of the above
a) Formulates, implements and monitors the monetary policy. Answer: a)
b) Manages the Foreign Exchange Management Act Appreciation is a rise in the price of a security or in the value
(FEMA), 1999. of one currency in terms of another. It is Increase in the value
c) Approving rules and laws pertaining to the stock of an asset which is in excess of the asset's depreciable cost
exchanges. and is due to economic and other factors (such as scarcity or
d) Maintains banking accounts of all scheduled banks. inflation) and not due to additions or improvements made to
e) All of the above it.
Answer: c)

386) Recently launched LIC's Micro Bachat plan b) 3.11
provides the maximum coverage up to ___________. c) 6.67
a) 50000 d) 1.77
b) 100000 e) None of the above
c) 150000 Answer: a)
d) 200000 Government is set to raise Rs 4.42 lakh crore through gilts in
e) 250000 the first half of FY20. The borrowing for the second half is
Answer: d) set at Rs 2.68 lakh crore. The Centre will auction Rs 17,000
LIC's Micro Bachat was recently, launched which provide crore of gilts per week during April-September.
coverage up to Rs. 2 lakh. The minimum basic sum assured is 389) The Reserve Bank of India recently, came out with
Rs. 50,000.It is a regular premium, non-linked, participating guidelines for banks to set up new currency chests. As per
micro-insurance plan which offers a combination of RBI norms the currency chests should have CBL of Rs.
protection and savings.It provides financial support for the _______ crore.
family in case of unfortunate death of the policyholder during a) 500
the policy term and a lump sum amount at the time of b) 1000
maturity for the surviving policyholders. c) 1500
387) In March 2019, ICICI Lombard partnered with d) 2000
____________ to offer cyber-insurance cover of Rs. 50000 e) 2500
for protection against the online frauds. Answer: b)
a) Paytm RBI appointed committee recommended that RBI should
b) Free Charge encourage banks to open large currency chests with modern
c) Mobikwik facilities and Chest Balance Limit (CBL) of at least Rs.1,000
d) PhonePe crore. As per the recommendation currency chests should
e) Google Pay have CBL of Rs.1,000 crore, subject to ground realities and
Answer: c) reasonable restrictions, at the discretion of the Reserve Bank.
ICICI Lombard General Insurance and Mobikwik have 390) In order to remain under FPI category, Portfolio
partnered to offer cyber-insurance cover of Rs.50000 for Investment by any single investor or investor group
protection against online frauds. It aims to provide protection should not exceed ________% of the equity of an Indian
against unauthorized and fraudulent transactions online, company.
across bank accounts, debit/credit cards and mobile wallets. a) 5
The cyber-insurance can be availed digitally through an app b) 10
at only Rs. 99 per month and with a sum insured of Rs. c) 20
50000. d) 25
388) In the first half of FY20, Government is set to raise e) 50
Rs ______ lakh crore through gilts i.e. instruments issued Answer: b)
by the government to borrow money from the market. Portfolio Investment by any single investor or investor group
a) 4.42 should not exceed 10% of the equity of an Indian company,

beyond which it is treated as FDI. Foreign Portfolio Investor d) 9
(FPI) stands for those investors who hold a short-term view e) 8
on the company, in contrast to Foreign Direct Investors Answer: b)
(FDI). IFSC is an 11-character codewith the first four alphabetic
391) An emerging market economy is highly classified characters representing the bank name, and the last six
with relatively- one in which the country is becoming a characters (usually numeric, but can be alphabetic)
developed nation and is determined through many representing the branch. The fifth character is 0 (zero) and
socio________ reserved for future use. Bank IFS Code is used by the NEFT
a) Economic factors & RTGS systems to route the messages to the destination
b) External factors banks/branches.
c) Commercial factors The Indian Financial System Code (IFS Code) is an
d) GDP factors alphanumeric code that uniquely identifies a bank-branch
e) Growth factors participating in the two main Electronic Funds Settlement
Answer: a) Systems in India.
An emerging market economy is highly classified with 394) For which of the following debt instruments, not
relatively - one in which the country is becoming a developed having a fixed rate of interest over the life of the
nation and is determined through many socio- economic instrument, can ‘Floating Interest Rate’ be applied?
factors. a) A loan
392) Depositor Education and Awareness Fund (DEAF) is b) A bond
maintained by which of the following? c) A mortgage
a) NABARD d) A credit
b) RBI e) All of these
c) Public Provident Fund Authorities Answer: e)
d) SIDBI An interest rate that is allowed to move up and down with the
e) IRDA rest of the market or along with an index. This contrasts with
Answer: b) a fixed interest rate, in which the interest rate of a debt
Depositor Education and Awareness Fund (DEAF) Scheme obligation stays constant for the duration of the agreement.
was established in 2014 and was inserted in the Banking A floating interest rate can also be referred to as a variable
Regulation Act, 1949 empowering the central bank. All interest rate because it can vary over the duration of the debt
banks are required to transfer money lying in accounts that obligation.
have been inoperative for at least 10 years to the DEAF 395) Which of the following component of external sector
according to specific guidelines. comes under Current Account in India?
393) Indian Financial System Code consists of how many a) FDI
alphanumeric digit? b) Interest payments received by government
a) 12 c) External Commercial Borrowings
b) 11 d) FII
c) 10 e) NRI bank account

Answer: b) Unified Payments Interface (UPI) is an instant real-time
The Balance of payments for a country is calculated by the payment system developed by National Payments
difference of Capital Account and Current account. Both the Corporation of India facilitating inter-bank transactions.
accounts have different components included in it. 398) Fiscal deficit is pegged at ______ per cent of GDP in
Current Account: Components – Net Import-Export (Import the Interim Budget 2019-20.
minus Export); Incomes (Profits, Interests, Dividend); a) 3.0%
Transfers (Donations, Gifts. etc.) b) 3.3%
Capital Account: Components – Investment (FDI, FII); Loan c) 3.4%
(Government Borrowings, External commercial borrowings); d) 3.5%
Bank account transfers by NRIs, etc. e) 3.2%
396) How much total liquidity has been injected by the Answer: c)
Reserve Bank of India (RBI) in the market in 2018-19? The fiscal deficit of year 2019-20 is pegged at 3.4% of GDP.
a) Rs 2.98 lakh crore However, considering the need for income support to farmers
b) Rs 1.50 lakh crore Rs. 20,000 crore was provided in 2018-19 RE and Rs. 75,000
c) Rs. 5.5 lakh crore crore in 2019-20 BE. If this is excluded, the fiscal deficit
d) Rs 1.65 lakh crore would have been less than 3.3% for 2018-19 and less than
e) Rs. 3.00 lakh crore 3.1% for year 2019-20.
Answer: a) 399) The GST Council allowed the filing of GST returns
The Reserve Bank of India (RBI) injected a total liquidity of with an annual turnover of up to Rs. 5 crore _____.
Rs 2.98 lakh crore in the market in 2018-19. Liquidity is a a) Yearly
measure of the ability of a debtor to pay their debts as and b) Half- Yearly
when they fall due. c) Quarterly
397) Who has become the first lender to charge for UPI d) Monthly
(Unified Payments Interface) use? e) None of the above
a) ICICI Bank Answer: c)
b) RBL Bank The GST Council allowed the filing of GST returns with an
c) South Indian Bank annual turnover of up to Rs. 5 crore is Quarterly.
d) Kotak Mahindra Bank 400) National Pension Scheme (NPS) is a government-
e) None of these sponsored pension scheme which was launched in 2004
Answer: d) for government employees. The Government has decided
Kotak Mahindra Bank becomes the first lender to Charge for to raise its contribution in NPS from 10% to _________.
UPI Use. a) 11%
For each Kotak Bank account, the first 30 UPI fund transfers b) 12%
will be free, after which a charge will be levied on all fund c) 13%
transfers from the bank account. d) 14%
e) 15%
Answer: d)

National Pension Scheme (NPS) is a government-sponsored Tax exemption limit for lump sum withdrawal on exit has
pension scheme which was launched in 2004 for government been enhanced to 60 per cent, the minister said, adding the
employees. The Government has decided to raise its entire withdrawal will now be exempt from income tax. Out
contribution in NPS from 10% t0 14%. of 60 per cent of the accumulated corpus withdrawn by the
Under the NPS, the subscriber is eligible to withdraw 60 per NPS subscriber at the time of retirement, 40 per cent is tax
cent of the corpus. The remaining 40% of the accumulated exempt and balance 20 per cent is taxable.
fund goes towards annuity.
401) Which of the following is not a feature of gilt edged 403) When an agent asks a customer to invest in a mutual
securities? fund product without telling him/her about the risks
a) Issued by non-governmental service organization involved in the investment, the process is termed as-
b) Issued by government entities a) Mis-selling
c) Repayment of both principal and interest is secured b) Undertaking
d) They have zero default risk c) Misappropriation of funds
e) All of these d) Cross-selling
Answer: a) e) None of these
These securities are usually referred to as ‘gilt-edged’ Answer: a)
securities as repayments of principal as well as interest are Misselling is a significant problem in financial services
totally secured, being the first charge on the nation’s purse. industry and for financial industry regulators. Brokers,
Hence the Central Government securities are considered as financial advisors, bank representatives or other salespeople
safest claims of financial products or services who are compensated based
402) The market price of a share of common stock is on commissions may have significant incentives to sell
determined by: investments or investment products based on how much they
a) The board of directors of the firm. can earn rather than what is suitable or what is needed by a
b) The stock exchange on which the stock is listed. customer. Misselling may occur with insurance products,
c) The president of the company. annuities, investments, mortgages and a variety of other
d) Individuals buying and selling the stock. financial products. A financial loss is not necessarily required
e) Securities and Exchange Board of India to meet the definition of misselling; the sale of an unsuitable
Answer: d) product is enough.
The market price of a share of common stock is determined 404) If Indian govt. decides the level of Rupee to be 57
by the market forces ie. Individuals buying and selling the from 55 against 1 dollar, it is called ________.
stock. a) Depreciation
b) Devaluation
c) Appreciation

d) Revaluation The government of India has doubled the monetary limit to
e) Demonetisation 20 lakh rupees for filing loan recovery application in the Debt
Answer: b) Recovery Tribunals (DRT) by banks and financial
Depreciation refers to a fall in the value of a currency due to institutions. As per the Finance Ministry, the move is aimed
market changes while devaluation signifies the deliberate at helping reduce pendency of cases in DRTs.
reduction undertaken by a countries govt. to its own 407) The National Green Tribunal imposed a cost of Rs.
currency. 25 lakh on the which state government for failing to stop
405) Which of the following statement is/are correct dumping of sewage and untreated water in the Ganga
regarding the MCLR? Canal.
a) It is the minimum interest rate of a bank below which it a) Uttar Pradesh
cannot lend b) Uttarakhand
b) It is an internal benchmark or reference rate for the bank c) Madhya Pradesh
c) The MCLR methodology has replaced the base rate system d) Bihar
d) The aim of MCLR is to improve the transmission of policy e) Jharkhand
rates into the lending rates of banks Answer: a)
e) All of the above The National Green Tribunal imposed a cost of Rs. 25 lakh
Answer: d) on the Uttar Pradesh government for failing to stop dumping
The marginal cost of funds-based lending rate (MCLR) refers of sewage and untreated water in the Upper Ganga Canal.A
to the minimum interest rate of a bank below which it cannot bench headed by NGT Chairperson Justice Adarsh Kumar
lend, except in some cases allowed by the RBI. Goel directed the urban development ministry to deposit a
a) It is an internal benchmark or reference rate for the bank. performance guarantee of Rs. 35 lakh.
b) MCLR actually describes the method by which the 408) What was the volume of priority sector lending
minimum interest rate for loans is determined by a bank. certificates (PSLCs) in the financial year 2018-19?
c) MCLR is decided on the basis of marginal cost or the a) Rs 1.9 trillion
additional or incremental cost of arranging one more rupee to b) Rs 50,000 crore
the prospective borrower. c) Rs 2.1 trillion
406) The government of India has doubled the monetary d) Rs 3.3 trillion
limit to _________________ rupees for filing loan e) Rs 2.8 trillion
recovery application in the Debt Recovery Tribunals Answer: d)
(DRT) by banks and financial institutions. The priority sector lending certificates (PSLCs) volume
a) 20 lakh rupees rocketed to Rs. 3.3 trillion in FY19,up from Rs. 1.9 trillion in
b) 30 lakh rupees the last financial year and Rs. 50,000 crore in FY17. PSLCs
c) 10 lakh rupees are used to enable banks to achieve the priority sector lending
d) 60 lakh rupees target and sub-targets by purchasing these instruments in the
e) 50 lakh rupees event of shortfall. Those falling short of targets have the
Answer: a) choice to place money with Nabard and Sidbi at low interest

rates or invest in PSLCs issued by fellow lenders which carry a) Canara Bank
higher coupon. b) Indian Overseas Bank
409) Union Cabinet approved the establishment of a New c) HDFC bank
Greenfield Airport at which of the following city in an d) Union Bank of India (UBI)
estimated cost of Rs. 1405 crore? e) Punjab National Bank (PNB)
a) Silchar in Cachar,Assam Answer: e)
b) Khair in Aligarh,Uttar Pradesh RBI has slapped Rs 2 Crore on Punjab National Bank
c) Hirasar in Rajkot, Gujarat (PNB) for non-compliance of regulatory directions with
d) Tezpur in Sonitpur,Assam regard to SWIFT operations.
e) None of these SWIFT stands for the “Society for Worldwide Interbank
Answer: c) Financial Telecommunications”. It is a messaging network
Union Cabinet approved the establishment of a New that financial institutions use to securely transmit information
Greenfield Airport at Hirasar in Rajkot, Gujarat at an and instructions through a standardized system of codes.
estimated cost of Rs. 1405 crore.Rajkot is the fourth largest SWIFT assigns each financial institution a unique code that
city of Gujarat and existing airport of Rajkot is severely land has 8 characters or 11 characters.
constrained having only 236 acres of land. Therefore the 412) What is the minimum size of issue and
decision to develop new airport was taken by cabinet. denominations of Certificates of Deposits (CD)?
410) Which among the following bank launches paperless a) Rs. 25000
account facility for NRIs? b) Rs. 50000
a) Corporation Bank c) Rs. 1 lakh
b) Syndicate Bank d) Rs. 5 lakhs
c) Bank of Baroda e) Rs. 10 lakhs
d) IDBI Bank Answer: c)
e) UCO Bank Minimum amount of a Certificates of Deposits should be
Answer: d) Rs.1 lakh, i.e., the minimum deposit that could be accepted
The Non-Resident Indians (NRIs) living in nearly 40 from a single subscriber should not be less than Rs.1 lakh and
countries will now be able to open account in IDBI Bank in multiples of Rs. 1 lakh thereafter.
without submitting paper documents. IDBI Bank has 413) The injection of money into a business or
launched 'NRI-Insta-Online' account opening process for organization that is about to collapse is called _____.
NRIs residing in Financial Action Task Force (FATF) a) Balloon Loan
member countries. The person will not be required to furnish b) Bailout
physical documents as well as KYC proofs for opening an c) Banque d’affaires
account with the bank. d) Banker Trojan
411) The Reserve Bank of India (RBI) has fined Rs 2 e) Bank Levy
Crore, recently (March 2019), on which of the following Answer: b)
bank for violating the regulatory directions regarding A bailout is the act of a business, an individual or a
SWIFT operations? government providing money and resources to a failing

company. These actions help to prevent the consequences of c) Asian Development Bank
that business's potential downfall which may include d) New Development Bank
bankruptcy and default on its financial obligations. Bailouts e) World Trade Organisation
can be in the form of loans, bonds, stocks or cash. Answer: e)
414) SBI has recently linked interest rate applicable on In World Trade Organisation terminology, subsidies in
savings account and short-term loans directly with which agriculture and agricultural produce are identified by
of the following rate? “Boxes”. The three boxes are; Amber, Blue and Green boxes.
a) CRR Amber box contains aid to be avoided and reduced by
b) Repo rate countries.
c) SLR 417) ‘IFSC’ is an 11-digit alpha-numeric code assigned by
d) Reverse repo rate RBI to identify every bank branch participating in the
e) MSF payment system uniquely. What is the full form of IFSC?
Answer: B) a) Indian Fiscal System Code
SBI has linked interest rate applicable on savings account b) Intra-Bank Financial System Code
deposits over Rs. 1 lakh and short-term loans directly with c) Indian Fiscal Source Code
Reserve Bank of India (RBI) repo rate from 1 May, 2019 d) International Financial Source Code
with an aim to ensure faster monetary transmission. Interest e) Indian Financial System Code
rate will now change automatically every time the regulator Answer: e)
(RBI) hikes or lowers its repo rate. The Indian Financial System Code (or IFSC) is an 11-digit
415) What does ‘B’ stands for in FRBMA? alpha-numeric code assigned by the Reserve Bank of India to
a) Banking identify every bank branch participating in the payment
b) Budget system uniquely.
c) Balance 418) What do you understand by term ‘Venture Capital’?
d) Bankrupt a) A short-term capital provided to industries
e) Bill b) Funds provided for replacement and renovation of
Answer: b) industries
The Fiscal Responsibility and Budget Management Act, 2003 c) Funds provided to industries at times of incurring losses
(FRBMA) is an Act of the Parliament of India to d) A long-term start-up capital provided to new entrepreneurs
institutionalize financial discipline, reduce India's fiscal e) None of these
deficit, improve macroeconomic management and the overall Answer: d)
management of the public funds by moving towards a Venture capital is financing that investors provide to start up
balanced budget and strengthen fiscal prudence. companies and small businesses that are believed to have
416) “Amber Box” is an important term used in long-term growth potential.
international economy associated with which 419) _______ is short term international capital
organization? movements, motivated by interest rate differential or
a) World Bank revaluation hopes/devaluation fears.
b) International Monetary Fund a) Cheap Money

b) Dear Money d) Loss Assets
c) Hot Money e) Profit and Loss Account
d) Broad Money Answer: b)
e) Narrow Money The capital of a business (working capital) which is used in
Answer: c) its day-to-day trading operations, calculated as the current
Hot Money is short term international capital movements, assets minus the current liabilities.
motivated by interest rate differential or revaluation 423) Which of the following is an investment strategy in
hopes/devaluation fears. which a fund invests in other types of funds?
420) ______is a temporary finance facility provided to a) Bond
Government of India by RBI to accommodate mismatch b) Securities
in the government's receipts and payments. c) Stock
a) LAF d) Funds of Fund
b) WMA e) None of the given options is true
c) SLR Answer: d)
d) WACR Funds of Fund is an investment strategy in which a fund
e) CRR invests in other types of funds.
Answer: b) 424) Money Laundering is _____________
The Reserve Bank of India gives temporary loan facilities to a) Conversion of money which is illegally obtained
the centre and state governments as a banker to government. b) Conversion of money which is legally obtained
This temporary loan facility is called Ways and Means c) All converted money
Advances (WMA). d) All of the above
421) A debt which is irrecoverable and is therefore e) None of the given options is true
written off as loss in the accounts of an institution or bank Answer: a)
is known as __________ Money laundering is the process of creating the appearance
a) External debt that large amounts of money obtained from serious crimes,
b) Good debt such as drug trafficking or terrorist activity (illegally sources)
c) Bad debt originated from a legitimate source.
d) Internal debt 425) Fiscal policy is concerned with which of the
e) None of these following?
Answer: c) a) Public revenue and Expenditure
The term bad debts usually refers to accounts receivable (or b) Issue of Currency
trade accounts receivable) that will not be collected. c) Export Import
422) Which of the following is defined as the difference d) Population Control
between current assets and current liabilities? e) Education for all
a) Venture Capital Answer: a)
b) Working Capital Fiscal policy is the policy relating to government revenues
c) Equitable Mortgage from taxes and expenditure on various projects. Monetary

Policy, on the other hand, is mainly concerned with the flow 428) ICICI Bank and Small Business FinCredit have
of money in the economy. collaborated to provide loan facility of up to ________ to
426) Under the share swap ratio announced for the MSMEs
proposed merger of Dena, Vijaya with BoB, will enable a) Rs. 5 lakh
shareholders of Dena Bank and Vijaya Bank to receive b) Rs. 1 crore
________ and __________equity shares respectively of c) Rs. 50 lakh
BoB for every 1,000 shares they hold. d) Rs. 5 crore
a) 110 and 402 e) Rs. 2 crore
b) 105 and 390 Answer: b)
c) 115 and 425 ICICI Bank and Small Business FinCredit will jointly
d) 101 and 420 provide loans worth up to Rs. 1 crore to the small and
e) 110 and 420 medium enterprises.It is the first-of-its-kind programme by a
Answer: a) bank and an NBFC with the loans of up to Rs 1 crore is for a
For every 1,000 equity shares of Vijaya Bank investors will tenure of 15 years per customer.
get 402 equity shares of Bank of Baroda. For every 1,000 429) Which bank has distributed subsidy of more than
equity shares of Dena Bank investors will get 110 equity Rs.1100 crores to more than 51,000 customers under the
shares of Bank of Baroda. Government's flagship scheme PMAY (Prime Minister
427) The ‘Krishi Krishak Bandhu’ scheme of the West Housing Scheme)?
Bengal government will provide a life insurance cover of a) ICICI Bank
how much amount to the families in case of death of a b) HDFC Bank
working farmer? c) Punjab National Bank
a) Rs. 2 lakh d) State Bank of India
b) Rs. 5 lakh e) Bank of India
c) Rs. 1 lakh Answer: b)
d) Rs. 3 lakh HDFC Ltd has distributed subsidy of more than Rs.1100
e) Rs. 4 lakh crores to more than 51,000 customers under the
Answer: a) Government's flagship scheme PMAY (Prime Minister
The state government of West Bengal has announced two Housing Scheme). HDFC has provided loans of over
initiatives under the ‘Krishi Krishak Bandhu’ scheme to Rs.9,800 crore under PMAY-CLSS(Credit Linked Subsidy
provide financial assistance to the farmers. The first Scheme) to customers belonging to EWS (Economically
programme will give an annual financial assistance of Rs Weaker Section), LIG (Low Income Group) and Middle
5,000 per acre in two installments (Rs 2,500) – one during Income Group (MIG) category.
kharif and another during rabi – for a single crop. Farmers 430) The Reserve Bank of India has initiated steps to set
can take the financial assistance at one go too. Under the up wide-based digital Public Credit Registry (PCR) to
second programme, life insurance cover of Rs. 2 lakh will be capture loan information of individuals and corporate
given in case of death (irrespective of the cause) of an borrowers. In this regard, RBI has invited expression of
earning farmer aged between 18 and 60 years.

interest from companies having turnover more than ____ important infrastructure projects abroad. Under the scheme,
in the last three years. the government provides the counter-guarantee and interest
a) Rs. 100 Crore equalisation to EXIM bank. Also, the scheme will now cover
b) Rs. 200 Crore all Indian entities, compared to the earlier stipulation of
c) Rs. 300 Crore minimum 75% Indian shareholding.
d) Rs. 500 Crore 433) Under the revamped PradhanMantri Jan-
e) Rs. 50 Crore DhanYojana (PMJDY), the accidental insurance cover
Answer: a) for new RuPay cardholders has been raised from Rs 1
RBI has invited expression of interest (EOI) for developing lakh to _____ for new PMJDY accounts opened after
PSC from companies with turnover of over Rs. 100 crore in August 28, 2018.
last three years. Setting up of PCR assumes significance a) Rs.1.5 lakh
amidst rising bad loans in financial system. The non- b) Rs.2.00 lakh
performing assets (NPAs) in Indian banking system is too c) Rs.3.00 lakh
much. d) Rs.4.00 lakh
431) What is the full form of CBLO? e) Rs.5.00 lakh
a) Coincidental Bank Lending Option Answer: b)
b) Collaterised Borrowing and Lending Facility Under the revamped PradhanMantri Jan-DhanYojana
c) Call Borrowing and Lending Option (PMJDY), the accidental insurance cover for new RuPay card
d) Collateralized borrowing and lending obligation holders has been raised from Rs 1 lakh to Rs. 2 lakh for new
e) None of the above PMJDY accounts opened after August 28, 2018. The
Answer: d) overdraft limit for account holders of PradhanMantri Jan
A collateralized borrowing and lending obligation (CBLO) is DhanYojana has now been doubled to Rs. 10,000
a money market instrument that represents an obligation from Rs. 5,000 earlier and there won't be any conditions
between a borrower and a lender as to the terms and attached for overdraft up to Rs. 2,000. The age limit for
conditions of the loan. availing overdraft facility has also been revised from 18-60
432) The government extended the Concessional years to 18-65 years.
Financing Scheme (CFS) till ________ to support Indian 434) What does ‘F’ stand for in ‘PMFBY’?
entities bidding for important infrastructure projects a) Financial
abroad. b) Fiscal
a) 2020 c) Fund
b) 2022 d) Fasal
c) 2023 e) Future
d) 2024 Answer: d)
e) 2025 The PradhanMantriFasalBimaYojana (Prime Minister's Crop
Answer: c) Insurance Scheme) was launched by Prime Minister of India
The government extended the Concessional Financing NarendraModi on 18 February 2016.
Scheme (CFS) till 2023 to support Indian entities bidding for

The objective of the scheme is to provide insurance coverage An index-linked bond is a bond in which payment of income
and financial support to the farmers in the event of failure of on the principal is related to a specific price index - often the
any of the notified crop as a result of natural calamities, pests Consumer Price Index. This feature provides protection to
& diseases. investors by shielding them from changes in the underlying
It envisages a uniform premium of only 2 per cent to be paid index. The bond's cash flows are adjusted to ensure that the
by farmers for Kharif crops, and 1.5 per cent for Rabi crops. holder of the bond receives a known real rate of return.
The premium for annual commercial and horticultural crops 437) The Central government and the
will be 5 per cent. _____________________ have signed 300 million dollar
435) What is the full form of the term LIBOR as used in loan agreements for India Energy Efficiency Scale up
the financial/banking sectors? Programme.
a) Local Indian Bank Offered Rate a) World Bank
b) London-India Bureau of Regulations b) Asian Development Bank
c) Liberal International Bank Official Ratio c) International Monetary Fund
d) London inter-Bank Offered Rate d) New Development Bank
e) None of the above e) Asian Infrastructure Investment Bank
Answer: d) Answer: a)
LIBOR or ICE LIBOR (previously BBA LIBOR) is a The Central government and the World Bank have signed
benchmark rate that some of the world’s leading banks 300 million dollar loan agreements for India Energy
charge each other for short-term loans. It stands for Efficiency Scale up Programme. They signed 220 million
Intercontinental Exchange London Interbank Offered Rate dollar Loan Agreement and an 80 million Guarantee
and serves as the first step to calculating interest rates on Agreement for the Efficiency Scale-Up Program.
various loans throughout the world. LIBOR is administered 438. The government of India has doubled the monetary
by the ICE Benchmark Administration (IBA), and is based limit to _________________ rupees for filing loan
on five currencies: U.S. dollar (USD), Euro (EUR), pound recovery application in the Debt Recovery Tribunals
sterling (GBP), Japanese yen (JPY) and Swiss franc (CHF), (DRT) by banks and financial institutions.
and serves seven different maturities: overnight, one week, a) 20 lakh rupees
and 1, 2, 3, 6 and 12 months. b) 30 lakh rupees
436) What are index-linked bonds? c) 10 lakh rupees
a) Bonds whose maturity value is after 15 years. d) 60 lakh rupees
b) Bonds in which payment of interest income on the e) 50 lakh rupees
principal is related to a specific price index Answer: a)
c) Bonds issued by Securities and Exchange Board Of The government of India has doubled the monetary limit to
India(SEBI) 20 lakh rupees for filing loan recovery application in the Debt
d) Bonds issued at par Recovery Tribunals (DRT) by banks and financial
e) Bonds which have Govt. linkage institutions. As per the Finance Ministry, the move is aimed
Answer: b) at helping reduce pendency of cases in DRTs.

439. The maximum value of any prepaid payment The maximum value of any prepaid payment instrument,
instrument, where specific limits have not been where specific limits have not been prescribed, shall not
prescribed, shall not exceed ______ exceed Rs 50,000/-
a) Rs. 25000 442) Financial Literacy includes the knowledge of making
b) Rs. 75000 appropriate decisions about personal finance such as
c) Rs. 50000 ________
d) Rs. 100000 a) Investing
e) None of these b) Insurance
Answer: c) c) Real estate
The maximum value of any prepaid payment instrument, d) Tax planning
where specific limits have not been prescribed, shall not e) All of the above
exceed Rs 50,000/- Answer: e)
440. The processing charges can be levied by NBFC- Financial literacy is the education and understanding of
Micro Finance Institutions on its customers shall not be various financial areas. This topic focuses on the ability to
more than _______ of gross loan amount. manage personal finance matters in an efficient manner, and
a) 1% it includes the knowledge of making appropriate decisions
b) 2% about personal finance such as investing, insurance, real
c) 1.5% estate, paying for college, budgeting, retirement and tax
d) 2.5% planning.
e) 0.5% 443) The process by which the central bank of a country
Answer: a) controls the supply of money in the economy by
RBI regulated MFIs who takes a registration with RBI and exercising its control over interest rates in order to
fulfil the accompanying conditions are called NBFC-MFIs or maintain price stability and achieve high economic
Non-Banking Financial Company-Microfinance Institutions growth is known as:
The Processing charges can be levied by NBFC-MFIs shall a) Economic Policy
not be more than 1% of gross loan amount. b) Monetary Policy
441) The maximum value of any prepaid payment c) Fiscal Policy
instrument, where specific limits have not been d) Credit Policy
prescribed, shall not exceed ______ e) Budgetary Policy
a) Rs. 25000 Answer: b)
b) Rs. 75000 Monetary Policy is the process by which monetary authority
c) Rs. 50000 of a country, generally a central bank controls the supply of
d) Rs. 100000 money in the economy by exercising its control over interest
e) None of these rates in order to maintain price stability and achieve high
Answer: c) economic growth. In India, the central monetary authority is
the Reserve Bank of India (RBI). It so designed as to
maintain the price stability in the economy.

444) The International Bank for Reconstruction and b) 50 crore
Development (IBRD) is an international financial c) 150 crore
institution that offers loans to- d) 10 crore
a) Multinational Banks e) 100 crore
b) Multinational Financial Institutions Answer: e)
c) Middle-Income Developing Countries The Power Ministry announced Rs 100 croreaward for states
d) Non-Government Organizations that would complete the household electrification early under
e) None of the given options is true the Saubhagya scheme.
Answer: c) 447) The Defence Acquisition Council (DAC) accorded
The International Bank for Reconstruction and Development approval for the acquisition of defence equipment worth
(IBRD) is an international financial institution that offers nearly Rs _______________ crore which includes
loans to middle-income developing countries. BrahMos Missiles, and Armoured Recovery Vehicles
445) ___________ a/an electronic trading platform, (ARVs) for Battle Tank Arjun.
operated by the Reserve Bank of India, used to facilitate a) Rs 5000 crore
the exchange of government securities and other money b) Rs 3000 crore
market instruments. c) Rs 7000 crore
a) Delivery versus Payment (DvP) d) Rs 1000 crore
b) Negotiated Dealing System (NDS) e) Rs 4000 crore
c) Risk Mitigation Answer: b)
d) Competition Commission of India (CCI) The Defence Acquisition Council (DAC) accorded approval
e) None of the given options is true for the acquisition of defence equipment worth nearly Rs
Answer: b) 3000 crore which includes BrahMos Missiles, and Armoured
Till 2002, the Government securities market was mainly a Recovery Vehicles (ARVs) for Battle Tank Arjun. The
telephone market. Buyers and sellers traded over telephone decision was taken at a meeting chaired by Defence Minister
and submitted physical Subsidiary General Ledger (SGL) NirmalaSitharaman.
transfer forms for transfer of the Government securities and 448) According to Moody’s, Indian economy is expected
cheques for settlement of the funds to the Reserve Bank of to grow at _______________ percent in the calendar year
India. These manual operations were inefficient and often 2019 and 2020.
resulted in delays. In order to improve efficiency in the a) 7.1%
market, the Reserve Bank of India took steps to automate the b) 7.5%
process of trading and settlement of Government securities c) 7.3%
transactions and the Negotiated Dealing System (NDS) was d) 7.4%
introduced in February 2002. e) 7.2%
446) The government has announced ________rupee Answer: c)
award for states that would complete the household Indian economy is expected to grow at 7.3 per cent in
electrification early under the Saubhagaya scheme. calendar year 2019 and 2020, and the government spending
a) 200 crore

announced ahead of elections this year which will support b) Rs.200 Crore
near-term growth. c) Rs.300 Crore
449) Which of the following is an apex financial d) Rs.400 Crore
institution for housing? e) Rs.500 Crore
a) AIFI Answer: c)
b) NHB IFC is a company which has net owned funds of at least Rs.
c) DFI 300 Crore and has deployed 75% of its total assets in
d) SIDBI Infrastructure loans is called IFC provided it has credit rating
e) NABARD of A or above and has a CRAR of 15%.
Answer: b) 452) The most appropriate measure of a country’s
NHB is an apex financial institution for housing. NHB has economic growth is
been established with an objective to operate as a principal a) GDP
agency to promote housing finance institutions both at local b) NDP
and regional levels. c) Per capita real income
450) Defence Acquisition Council (DAC) headed by Union d) GNP
Defence Minister NirmalaSitharaman approved the e) None of these
acquisition of defence equipment worth __________ Answer: c)
Crore? Per capita income is the average income of the country. Per
a) Rs.3000 Crore capita real income takes inflation into consideration.
b) Rs.2700 Crore 453) “CAGR” is a measure of growth over multiple time
c) Rs.5000 Crore periods. What “C” denotes in acronym CAGR?
d) Rs.1900 Crore a) Calculative
e) None of these b) Compound
Answer: b) c) Co-related
The Defence Acquisition Council (DAC) headed by Union d) Credit-linked
Defence Minister NirmalaSitharaman approved the e) Cost-linked
acquisition of defence equipment at cost of Rs 2700 crores. Answer: b)
The following was approved: 3 Cadet Training ships for the The Compound Annual Growth Rate (CAGR) is a useful
Indian Navy to impart basic sea training for officer cadets measure of growth over multiple time periods. It can be
and women officer trainees. These ships would perform thought of as the growth rate that gets you from the initial
hospital ship duties, providing humanitarian assistance and investment value to the ending investment value if you
disaster relief, undertaking search and rescue (SAR) missions assume that the investment has been compounding over the
and non-combatant evacuation operations. time period.
451) Infrastructure Finance Company (IFC) is a non- 454) Which of the following statements are true in
banking finance company has a minimum Net Owned regards NBFC?
Funds of _______. a) A NBFC can accept demand deposits
a) Rs.100 Crore b) A NBFC can issue cheques

c) Credit Guarantee Corporation is available to depositors of agricultural requirements through its holistic approach. The
NBFCs execution of the platform will be done by IT Centre of
d) A NBFC can extend loans and advances Excellence (ITCoE) of Bank of Baroda in partnership with
e) None of the above IBM India.
Answer: d) 457) As announced in Interim Budget 2019-20, what is
NBFC’s lend and make investments and hence their activities target of Fiscal deficit for financial year 2019-20?
are similar to that of banks; however there are a few a) 3.1% of GDP
differences as given below: b) 3.5% of GDP
i. NBFC cannot accept demand deposits; c) 3.4% of GDP
ii. NBFCs do not form part of the payment and settlement d) 4.4% of GDP
system and hence cannot issue cheques e) 2.8% of GDP
iii. Credit Guarantee Corporation is not available to Answer: c)
depositors of NBFCs, unlike in case of banks. The target of fiscal deficit for 2019-20 is 3.4% of GDP while
455) National income doesn’t include: for next year it is estimated to be 3.1% of GDP.
a) Income for government expenditure 458) IDBI Bank has been categorized as ‘Private Sector
b) Interest on unproductive national debt Lender’ by RBI. What percentage of stake has been
c) The payments by the household to firm the purchase of acquired by Life Insurance Corporation of India (LIC) in
goods and services the bank recently?
d) Undistributed profit a) 49%
e) All of the above b) 26%
Answer: b) c) 65%
National income doesn’t include interest on unproductive d) 76%
national debt. e) 51%
456) Bank of Baroda recently signed MoU with ____ Answer: e)
firms to develop “Baroda Kisan” to provide solutions for In March 2019, The Reserve Bank of India categorized IDBI
all major agricultural requirements. Bank as a Private Sector Bank with effect from January 21,
a) 2 2019 following Life Insurance Corporation of India (LIC) has
b) 3 acquired 51 per cent of the total paid-up equity share capital
c) 4 of the bank.
d) 5 459) What percentage of stake has been acquired by
e) 6 Asian Development Bank in micro-financier company
Answer: e) ‘Annapurna Finance’ recently?
Bank of Baroda has signed memorandum of understanding a) 24%
(MoU) with six firms namely Skymet Weather Services, b) 14%
Weather Risk Management Services, BigHaat, Agrostar c) 49%
India, EM3 Agri Services and PoortiAgri Services to develop d) 76%
“Baroda Kisan”. It will provide solutions for all major e) 51%

Answer: b) 462) _________ is a situation where the prices go out of
In February, 2019, Asian Development Bank (ADB) bought control and the monetary authorities are unable to
14% stake in micro-financier Annapurna Finance for Rs. 137 impose any check on it.
crores. ADB Bank bought this stake with a motive of a) Creeping inflation
attracting long -term funds from global lenders and investors. b) Deflation
460) Which state government has launched ‘Pravasi c) Galloping inflation
Dividend Pension Scheme’ to provide regular pension to d) Hyperinflation
non-resident? e) Stagflation
a) Manipur Answer: d)
b) Uttar Pradesh Creeping Inflation: This is also known as mild inflation or
c) Maharashtra moderate inflation. This type of inflation occurs when the
d) Gujarat price level persistently rises over a period at a mild rate.
e) Kerala When the rate of inflation is less than 10 per cent annually, or
Answer: e) it is a single digit inflation rate, it is moderate inflation.
Kerala state government has launched a ‘Pravasi Dividend Deflation is the reverse of inflation. It refers to a sustained
Pension Scheme’ to provide regular pension to non-resident decline in the price level of goods and services. It occurs
Keralites on a one-time payment of Rs.5 Lakhs. when the annual inflation rate falls below zero percent (a
461) According to RBI guidelines, what is the minimum negative inflation rate), resulting in an increase in the real
percent of Capital to Risk Assets Ratio (CRAR) that all value of money.
Regional Rural Banks (RRBs) must maintain? If mild inflation is not checked and if it is uncontrollable, it
a) 5% may assume the character of galloping inflation. Inflation in
b) 7% the double or triple digit range of 20, 100 or 200 percent a
c) 9% year is called galloping inflation.
d) 11% Hyperinflation occurs when the prices go out of control and
e) 12% the monetary authorities are unable to impose any check on
Answer: c) it.
According to RBI guidelines, all Regional Rural Banks or 463) In NEFT, the maximum amount per transaction is
RRBs are advised to achieve and maintain a minimum limited to ______ for cash-based remittances within
Capital to Risk Assets Ratio (CRAR) of 9%.CRAR is India.
expressed as a percentage of a bank's risk credit exposures a) Rs. 25000
and is also known as Capital Adequacy Ratio (CAR).It is the b) Rs. 50000
amount of money which a bank must keep with itself in form c) Rs. 2 Lakh
of cash. It is used by any bank in case of NPA or other d) Rs. 75000
financial problem to continue its operation or return the e) Rs. 1 Lakh
money of depositor.It protects depositor money and promote Answer: b)
the stability and efficiency of financial systems. National Electronic Funds Transfer (NEFT) is a nation-wide
payment system facilitating one-to-one funds transfer. The

maximum amount per transaction is limited to Rs.50,000/- Doubtful asset is an asset would be classified as doubtful if it
for cash-based remittances within India and also for has remained NPA for a period exceeding 12 months
remittances to Nepal under the Indo-Nepal Remittance 466) What is the housing loan limit under priority sector
Facility Scheme. lending for metropolitan cities?
464) Bank loans up to a limit of ____ per borrower for a) Rs. 35 lakhs
building social infrastructure in Tier II to Tier VI centers b) Rs. 50 lakhs
are eligible for classification under priority sector. c) Rs. 20 lakhs
a) Rs. 10 millions d) Rs. 25 lakhs
b) Rs. 50 millions e) Rs. 40 lakhs
c) Rs. 100 millions Answer: a)
d) Rs. 25 millions Loans to individuals up to Rs. 35 lakhs in metropolitan
e) Rs. 40 millions centres (with population of ten lakh and above) and loans up
Answer: b) to Rs. 25 lakhs in other centres for purchase/construction of a
Bank loans up to a limit of Rs. 50 millions per borrower for dwelling unit per family, are eligible to be considered as
building social infrastructure for activities namely schools, priority sector provided the overall cost of the dwelling unit
health care facilities, drinking water facilities and sanitation in the metropolitan centre and at other centres does not
facilities (including loans for construction/ refurbishment of exceed Rs. 45 lakhs and Rs. 3 lakhs, respectively. Housing
toilets and improvement in water facilities in the household) loans to banks’ own employees are not eligible for
in Tier II to Tier VI centers are eligible for classification classification under priority sector.
under priority sector. 467) ‘Mi Pay’, a UPI-Based Payments App launched
465) Assets which loss has been identified by the bank recently by mobile company Xiaomi in India. Which bank
and remains uncollectable are termed as _______ assets. is service provider of this application?
a) Substandard a) Axis Bank
b) Standard b) ICICI Bank
c) Doubtful c) IDBI Bank
d) Loss d) Kotak Mahindra Bank
e) None of the above e) HDFC Bank
Answer: d) Answer: b)
Loss assets are those where loss has been identified by the In March 2019, Xiaomi launched ‘MiPay’, a UPI (Unified
bank and remains uncollectable Payments Interface) based mobile payment service in India to
Standard asset for a bank is an asset that is not classified as send money from one bank account to another or between
an NPA. UPI (Unified Payments Interface) accounts. The service
NPA is a loan or advance for which the principal or interest provider of this application is ICICI Bank.
payment remains overdue for a period of 90 days 468) What amount of loan agreement was recently signed
Sub Standard assets are the assets which have remained NPA between the government of India, government of Andhra
for a period less than or equal to 12 months Pradesh and the World Bank for implementation of the
‘Andhra Pradesh Health Systems Strengthening Project’?

a) $ 250 million crores. ADB Bank bought this stake with a motive of
b) $ 328 million attracting long -term funds from global lenders and investors.
c) $ 465 million 471) Which among the following determines the ability of
d) $ 765 million any organization to meet the financial losses?
e) $ 124 million a) Liquidity Ratio
Answer: b) b) Investment Ratio
The World Bank has decided to provide a loan of Rs. 2200 c) Leverage Ratio
crores ($328-million) to Andhra Pradesh for implementation d) Transfer Ratio
of the ‘AP Health Systems Strengthening Project e) None of the above
(APHSSP)’. The loan agreement was signed between the Answer: c)
Government of India, government of Andhra Pradesh and the Leverage Ratio is defined as the financial ratio that is used to
World Bank. determine the ability of an organization to meet its financial
469) Which state has announced a Rs. 2250 crores scheme losses. It is a measure of risk used extensively in the banking
named as “MukhyaMantriKrishiYojana” to help farmers and financial industry. This is mainly a measure of the debt
to double their income by 2022? load of any organization with respect to its asset base.
a) Jharkhand 472) Banks can borrow up to ________ of their Net
b) Chhattisgarh Demand and Time Liabilities under the Marginal
c) Karnataka Standing Facility (MSF) window.
d) Odisha a) 1%
e) Jammu & Kashmir b) 2%
Answer: a) c) 0.5%
In December, 2018, Jharkhand chief minister Raghubar Das d) 1.5%
announced a Rs. 2250 crores scheme named as e) None of the above
“MukhyaMantriKrishiYojana” which will help around 22.76 Answer: a)
lakhs medium and marginal farmers to double their income The Marginal Standing Facility (MSF) is a window created
by 2022. The Central Government has set a goal to double by the Reserve Bank of India to meet overnight liquidity
the income of all the farmers by 2022. requirements by banks and approved financial organizations.
470) Which multilateral institution has acquired 14% The organizations can borrow up to 1% of their net demand
stake in micro-financier Annapurna Finance? and time liabilities through this window. The present rate of
a) International Monetary Fund Marginal Standing Facility is 6.75%.
b) Asian Development Bank 473) LORO Account is a _________ for one bank who
c) World Bank opened the bank.
d) New Development Bank a) Nostro Account
e) None of these b) Vostro Account
Answer: b) c) NRO Account
In February, 2019, Asian Development Bank (ADB) bought d) NRE Account
14% stake in micro-financier Annapurna Finance for Rs. 137 e) LORO Account

Answer: a) Except for Dhanalaxmi Small Finance Bank, all others are
The LORO Account is a Nostro Account for one bank who small finance banks. The list of small finance banks in India
opened the bank and Loro Account for another bank who are given below:
refers first one account. Loro accounts are generally held by a • AU Small Finance Bank
3rd party bank, other than the account maintaining bank or • Capital Small Finance Bank
with whom the account is maintained. Loro Account is a • Equitas Small Finance Bank
Current Account maintained by one Domestic Bank on behalf • ESAF Small Finance Bank
of another domestic bank in a foreign bank in foreign • Fincare Small Finance Bank
currency. • Janalakshmi Small Finance Bank
474) The major components of market risk are ________. • Suryoday Small Finance Bank
a) Interest rate risk, Equity risk, Forexrisk, Commodity risk • Ujjivan Small Finance Bank
b) Forex risk, Market risk, Operational risk, Equity risk • Utkarsh Small Finance Bank
c) Financial risk, Operational risk, Commodity risk, Capital 476) The Union Cabinet approved ________% hike in
risk Dearness Allowance to central government employees
d) Interest rate risk, Commodity risk, Capital risk, Forexrisk and Dearness Relief to pensioners with effect from
e) Financial risk, Commodity risk, Capital risk ,Equityrisk January 1, 2019.
Answer: a) a) 1.5
The Basel Committee on Banking Supervision defines b) 2
market risk as the risk of losses in on- or off-balance sheet c) 2.5
positions that arise from movement in market prices. The d) 3
major components of market risk include: interest rate risk, e) 3.5
equity risk, forex risk and commodity risk. Answer: d)
475) Which of the following is/are not a small finance The Union Cabinet approved 3% hike in Dearness Allowance
bank? to central government employees and Dearness Relief to
(1) Equitas Bank pensioners with effect from January 1, 2019. The combined
(2) Janalakshmi Bank impact of the hike in dearness allowance and dearness relief
(3) AU Bank will amount to Rs 9,168.12 crore per annum. Dearness
(4) ESAF Bank allowance is provided as an adjustment to compensate for the
(5) Suryoday Bank increase in the cost of living due to inflation.
a) Both 1 and 2 477) On which of the following banks did RBI impose a
b) Only 2, 3 and 4 monetary fine of Rs. 4 crore on 4 March 2019?
c) All are Small Finance Banks a) Karnataka Bank
d) Only 2, 3, 4 and 5 b) United Bank of India
e) Only 1 c) KarurVysya Bank
Answer: c) d) Dena Bank
e) Yes Bank
Answer: a)

RBI imposed a total monetary fine of Rs 8 crore on 3 banks - • Allocation to be increased by 21% to Rs. 58,166
Karnataka Bank, United Bank of India and KarurVysya crore in 2019-20.
Bank. Banks were charged for non-compliance of directions
• Arunachal Pradesh came on the air map recently.
on Swift messaging software. Rs 4 crore fine was imposed on
Karnataka Bank, United Bank faced a penalty of Rs 3 crore, • Meghalaya, Tripura and Mizoram came on India’s
and Rs 1 crore fine on KarurVysya Bank. Rs 1 crore was also rail map for the first time.
charged on Yes Bank for the same reason.
• Container cargo movement through improved
478) The PradhanMantriShramyogiManvDhanYojana
navigation capacity of the Brahmaputra.
will assure a monthly pension of Rs.________ on
retirement for workers in the organised and unorganised 480) A loan agreement of what amount was signed
sectors who have a monthly income below Rs.15,000. between the Union Government, Government of
a) 1,500 Himachal Pradesh and World Bank, for bringing clean
b) 2,000 and reliable drinking water to the citizens of Greater
c) 2,500 Shimla area?
d) 3,000 a) $50 million
e) 3,500 b) $40 million
Answer: d) c) $60 million
Center has announced its proposal to launch a pension d) $70 million
scheme for workers in the organised and unorganised sectors e) $80 million
who have a monthly income below Rs. 15,000. The scheme Answer: b)
called PradhanMantriShramyogiManvDhanYojana will A loan agreement of $40 million was signed between the
assure a monthly pension of Rs.3000 on retirement. It is Union Government, Government of Himachal Pradesh and
expected to benefit 10 crore workers in the unorganized World Bank, for bringing clean and reliable drinking water to
sector. the citizens of Greater Shimla area.
479) Which of the following is/are true regarding the 481) Certificate of Deposit (CD) is a _____ instrument.
North East in the interim budget of 2019? a) Shot term
a) Allocation to be increased by 21% to Rs. 58,166 crore in b) Long term
2019-20. c) Negotiable money market instrument
b) Arunachal Pradesh came on the air map recently. d) Unsecured money market
c) Meghalaya, Tripura and Mizoram came on India’s rail e) None of these
map for the first time. Answer: c)
d) Container cargo movement through improved navigation Certificate of Deposit (CD) is a negotiable money market
capacity of the Brahmaputra. instrument and issued in dematerialised form or as a Usance
e) All are correct Promissory Note against funds deposited at a bank or other
Answer: e) eligible financial institution for a specified time period.
All are true regarding the North East in the interim budget of 482) The objective of the Capital market operations is
2019. ______

a) To raise funds from the public with the aim to put the c) Regulating the working of depositories, custodians of
investor’s wealth to productive long-term use securities
b) To raise the value of a country’s currency d) Promoting the development of a healthy Capital market
c) To search for the best price of capital goods e) To protect the interests of investors in securities market
d) All the above Answer: b)
e) None of the above Underwriting new Capital Issues is not a function of the
Answer: a) Securities and Exchange Board of India (SEBI). As the name
The Capital market in India mainly operates through its two suggests, the main focus of this function of SEBI is to protect
apex stock exchanges: Bombay Stock Exchange (BSE) and the interest of investor and security of their investment. The
National Stock Exchange (NSE). Its objective is to raise various functions of SEBI are: To protect the interests of
funds from public and put the investor’s wealth to productive investors in securities market. To promote the development
long -term use. It is used for long-term credit. In Capital of securities market. To regulate the business in stock
market borrowing and lending of money takes place for more exchanges and any other securities markets.
than 1 years. 485) The amount to be paid to the holder of a financial
Composition of Capital Market- It is mainly divided into obligation at the obligation's maturity is known as
three categories- _________.
a) Securities Market a) Paid-up value
b) Development Financial Institutions b) Surrender Value
c) Financial Intermediaries c) Maturity value
483) A segment of the financial market in which financial d) Sum Assured
instruments with high liquidity and very short maturities e) None of these
are traded is known as __________ Answer: c)
a) Money market Maturity value is the amount payable to an investor at the end
b) Stock Market of a debt instrument's holding period (maturity date). For
c) Derivative market most bonds, the maturity value is the face amount of the
d) Equity market bond. For some certificates of deposit (CD) and other
e) None of these investments, all of the interest is paid at maturity.
Answer: a) 486) How much percent of life insurer’s premium income
A segment of the financial market in which financial was grown for the year 2019, as per Insurance Regulatory
instrument with high liquidity and very short maturities are and Development Authority of India (IRDAI)?
traded. Some of the money market instruments are treasury a) 15%
bill etc. b) 14%
484) Which of the following is not a function of the c) 13%
Securities and Exchange Board of India (SEBI)? d) 11%
a) Supervising the working of the stock Exchanges e) None of these
b) Underwriting new Capital Issues Answer: d)

11 percent of life insurer’s premium income was grown for equivalent to $86 billion in the fiscal year 2016. The report
the year 2019, as per Insurance Regulatory and Development analyzed the overall societal costs - instead of just the fiscal
Authority of India (IRDAI) costs - of subsidies, blackouts and other distortions in the
487) Which among the following infrastructure major has power sector.
bagged orders worth nearly Rs. 2,360 Crore for rural 489) In February 2019, the Reserve Bank of India has
development projects? doubled the limit for 'Bulk Deposits' to __________.
a) Larsen and Toubro (L&T) a) Rs. 1 Crore
b) Delhi Land & Finance Limited (DLF) b) Rs. 50 Lakh
c) Tata Group c) Rs. 2 Crore
d) Jaiprakash Associates Ltd. d) Rs. 3 Crore
e) Unitech Limited e) Rs. 5 Crore
Answer: a) Answer: c)
The construction arm of infrastructure major Larsen and Reserve Bank of India has doubled the limit for bulk deposits
Toubro (L&T) has bagged orders worth nearly Rs. 2,360 from Rs.1 Crore to Rs.2 Crore. This would enhance the
Crore for rural development projects. L&T’s Water and operational freedom of banks. Commercial banks offer a
Effluent Treatment and Transportation Infrastructure lower rate of interest on bulk deposits.Banks would maintain
Business have secured order worth Rs. 1,281 Crore from the their bulk deposit interest rate cards in the core banking
Andhra Pradesh Capital Region Development Authority (AP system for supervisory review.
CRDA). Another turnkey order worth Rs. 1,076 Crore has 490) The Reserve Bank of India will infuse Rs ________
been secured by Water and Effluent Treatment Business from crore into the banking system through Open Market
the Madhya Pradesh Jal Nigam Maryadit (MPJNM) for the Operations in 2019.
execution of multi village rural water supply schemes in a) 10,000
Jabalpur, Narsinghpur, Seoni and Damoh districts of Madhya b) 15,000
Pradesh c) 20,000
488) As per the report by the World Bank, India's power d) 25,000
sector has an efficiency gap that costs the Indian economy e) 30,000
about __________ of GDP per year. Answer: d)
a) 3.2% The Reserve Bank of India (RBI) will infuse Rs 25,000 crore
b) 4% into the banking system through Open Market Operations
c) 2.8% (OMO). The RBI will conduct purchase of government
d) 5% securities through multi-security auction using the multiple
e) 6.6% price method. The decision on OMO is based on review of
Answer: b) the evolving liquidity conditions in the banking system.
According to the report titled 'In the Dark: How Much Do 491) What is the expand form of ‘OTC’?
Power Sector Distortions Cost South Asia' by the World a) Opposite Tenure Counter
Bank, India's power sector has an efficiency gap that costs b) Over Term Counter
the Indian economy about 4% of GDP a year which is c) Over Transfer of Cash

d) Opposite Transfer of Cash Open Market Operations (OMO): The buying and selling of
e) Over the Counter eligible securities in the money market by RBI for the
Answer: e) purpose of curtailing or expanding the volume of credit. By
OTC – Over the Counter selling securities the RBI can absorb funds, and buying the
The phrase "over-the-counter" can be used to refer to stocks securities can release funds also into the market. The purpose
that trade via a dealer network as opposed to on a centralized of OMO is to influence the volume of cash reserves with the
exchange. It also refers to debt securities and other financial commercial banks and thus influence the volume of loans and
instruments, such as derivatives, which are traded through a advances they can make to the industrial and commercial
dealer network. sector.
492) In Economics, the business of buying trade debts at a 494) Which agency maintains the Micro Finance
discount and making a profit when debt is realized and Development and Equity Fund in India?
also taking over a collection of trade debts at agreed a) SEBI
prices is termed _____. b) NABARD
a) Forfeiting c) RBI
b) Factoring d) Ministry of Finance
c) Exfoliation e) SIDBI
d) Hypothecation Answer: b)
e) None of the above In the Union budget of 2000-01, creation of Micro Finance
Answer: b) Development Fund (MFDF) came into existence. The
Forfeiting: In International Trade when an exporter finds it objective of the MFDF is to facilitate and support the orderly
difficult to realize money from the importer, he sells the right growth of the micro finance sector through diverse modalities
to receive money at a discount to a forfaiter, who undertakes for enlarging the flow of financial services to the poor,
inherent political and commercial risks to finance the particularly for women and vulnerable sections of society,
exporter, of course with assumption of a profit in the consistent with sustainability. Consequently, MFDF with a
venture.Factoring: Business of buying trade debts at a corpus of Rs.200 crore was established in NABARD.
discount and making a profit when debt is realized and also 495) As per Coinage Act 1906, in India, coins can be
taking over collection of trade debts at agreed prices. issued upto the denomination of?
493) In the context of Indian economy, ‘Open market a) Rs. 50
Operations’ refers to ___________. b) Rs. 100
a) Purchase and sale of Government securities by the c) Rs. 500
Government d) Rs. 1000
b) Purchase and sale of Government securities by the RBI e) None of these
c) Borrowing by the scheduled commercial banks from RBI Answer: d)
d) Lending by commercial banks to Industries and traders The Reserve Bank can also issue notes in the denominations
e) None of the above of one thousand rupees, five thousand rupees and ten
Answer: b) thousand rupees, or any other denomination that the Central
Government may specify. There cannot, though, be notes in

denominations higher than ten thousand rupees in terms of industrial output. The earlier projected GDP growth was 7.5
the current provisions of the Reserve Bank of India Act, percent.Other reason for lowered growth projection is slow
1934. Coins can be issued up to the denomination of progress on cases referred to the National Company Law
Rs.1000. Tribunal under Insolvency and Bankruptcy Code,
496) What is the revised interest rate of Employee’s 2016.Investment Expenditure Growth which is measured by
Provident Fund (EPF) for 2018-19? gross fixed capital formation (GFCF) has also been
a) 8.45% downgraded to 9.2 percent from the earlier forecast of 10.3
b) 8.55% percent for the year 2019-20, is another reason cited for
c) 8.35% lowering the growth forecast.
d) 8.65% 498) Name the Cryptocurrency Exchange in India, which
e) None of these has launched the first Indian Platform for Wholesale
Answer: d) Cryptocurrency Trading?
The Department of Financial Services, a wing of the Ministry a) Zebpay
of Finance, has approved an Employee’s Provident Fund b) Belfrics
(EPF) interest rate hike of 10 basis point to 8.65 percent for c) BuyUcoin
2018-19, as decided by the retirement fund body Employee’s d) Coinsecure
Provident Fund Organisation (EPFO). This move will benefit e) None of these
more than 6 crores formal sector workers. Earlier in 2017-18, Answer: c)
the interest rate on EPF was 8.55 percent.In February 2019, BuyUcoin, second oldest Cryptocurrency Exchange in India,
the EPFO’s apex decision making body, the Central Board of has introduced a new and unique platform for wholesale
Trustees headed by Labour Minister SantoshGangwar, had cryptocurrency trading. This platform works on ‘free trading
decided to hike the interest rate on EPF to 8.65 percent for model’ which means it charges zero fee on any trade. This
2018-19 from 8.55 percent for 2017-18. This hike was the wholesale platform also known as OTC (Over-the-counter)
first increase in the last three years. Desk allows users to trade on a large scale with low price
497) What is the revised GDP growth of India for the fluctuations. This new platform will help to improve the
financial year 2019-20, as per India Ratings and Research problem of liquidity of cryptocurrency in Indian market. This
company? will also help in quicker transactions, better prices and
a) 7.2% market stability.
b) 7.1% 499) Which motif is depicted in the back side of the new
c) 7.3% Rs.20 denomination note?
d) 7.5% a) Mangalyaan
e) None of these b) Ellora caves
Answer: c) c) Hampi with Chariot
India’s GDP growth projection for 2019-20 lowered to 7.3 d) SanchiStupa
percent by India Ratings and Research, a Fitch Group e) None of these
company, due to below normal monsoon prediction, Answer: b)
continued agrarian distress and loss of momentum in

The Reserve Bank of India (RBI) will issue new Rs 20 e) None of these
denomination banknotes having a base colour of greenish - Answer: a)
yellow with size of 63 X 129 mm. The first Rs 20 notes were The Reserve Bank of India (RBI) extended the ombudsman
issued in the Mahatma Gandhi Series in August 2001.The scheme coverage to non-deposit taking (NBFCs) Non-
new note will have a motif of Ellora caves on the dorsal side. banking Financial Companies having asset size of Rs.100
500) Reserve Bank of India (RBI) has extended the crore or higher. This was notified in the Statement of
ombudsman scheme coverage to non-deposit taking Non- Developmental and Regulatory Policies under the Monetary
banking Financial Companies (NBFCs) having asset size Policy Statement.The objective of this was to provide a cost-
of how much worth? free and swift complaint-redressal mechanism relating to
a) 100 crore shortage in the services, concerning loan and other issues by
b) 50 crore NBFCs under the scheme.The scheme before the extension to
c) 20 crore some categories of NBFCs was effective for deposit-
d) 75 crore accepting NBFCs.

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Top 500 Financial Awareness Questions for LIC AAO/SBI PO/SBI Clerk

1) An emerging market economy is highly classified with e) NPA

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201) What do you understand by, ‘Asset Reconstruction e) Rs. 200000

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